KONE Shareholders Approve US$34-Billion TKE Acquisition

At an extraordinary general meeting on June 3 at company headquarters in Helsinki, Finland, KONE shareholders approved the company's planned US$34-billion acquisition of German rival TK Elevator (TKE), a deal that would "propel KONE past U.S. rival Otis, create a European champion and strengthen its presence in the Americas," Reuters is among outlets to report. Antitrust scrutiny means closing the deal with TKE owners Advent, Cinven and others could take up to 18 months, and divestments in certain geographical areas are likely, KONE Chief Financial Officer Ilkka Hara told the source. The acquisition is "the largest sell-side private equity deal in Europe since records began in 1980," according to the London Stock Exchange, Reuters observed. It required a two-thirds majority approval that had essentially been secured in advance, with 74% of shareholders pre-committing to backing it.