The Finnish company Kone has offered 17 billion euros for the elevator division of the German concern Thyssenkrupp, the Helsingin Sanomat newspaper reported on Tuesday.
If implemented, the transaction will be the largest in the history of Finland.
“According to sources, the offer from Kone and CVC Capital Partners will be about 17 billion euros. With this amount, they will try to win at least one billion from applications from private equity funds, also applying for a purchase,” the statement said.
So far, the largest deal in Finnish history was the purchase of Alcatel-Lucent by Finnish company Nokia in 2015 for 16 billion euros.
Thyssenkrupp was previously valued at 15 billion euros.
Earlier it was reported that Kone is negotiating the acquisition of the German company “together with partners”, which will allow to divide the business into geographical markets and avoid criticism of the EU antitrust authorities. According to unconfirmed reports, Kone is ready to pay 3 billion euros in cash to Thyssenkrupp, who are in dire need of money.
According to Bloomberg, the global elevator market is now divided by Kone – 13%, Thyssenkrupp – 15%, Schindler – 16%, Otis – 20%, other manufacturers – 36%. Earlier on the exchange announced Otis, part of the United States concern United Technologies.
The Finnish company Kone is one of the world leaders in the production of elevators and escalators, automatic doors for buildings. In 2019, Kone’s annual sales amounted to 9.98 billion euros, operating profit of 1.192 billion euros, the company at the end of 2019 employed about 60 thousand employees. Kone shares are traded on the Nasdaq Helsinki Ltd in Finland.
ThyssenKrupp AG is one of Germany’s largest industrial concerns. The company is the world’s largest producer of high alloy steel and metalworking machines.