Schindler Challenges Kone-TK Elevator Merger Plan

Swiss lift maker Schindler plans to challenge a potential merger between rivals Kone and TK Elevator. The merger, proposed by Kone, could form the largest lift manufacturer, surpassing current leader OTIS. Schindler CEO Paolo Compagna expects significant industry disruption and has reaffirmed opposition since a similar proposal in 2019.

Schindler is set to oppose any merger between two of its rivals, Kone and TK Elevator, before regulatory bodies, according to a statement by its CEO Paolo Compagna on Tuesday. This comes after Bloomberg reported that the Finnish lift company Kone, is in discussions to acquire TK Elevator.

If successful, the merger would create the largest lift manufacturing company, surpassing OTIS and Schindler. Compagna described the potential merger as an industry 'bloodbath' that could lead to substantial disruptions, considering the overlapping operations of the third and fourth largest lift manufacturers.

With Schindler's stance on such a merger unchanged since a similar attempt in 2019, Compagna stated that any merger attempts would likely take years and entail numerous asset divestitures. Should divestitures happen, Schindler is poised to pursue bolt-on acquisitions.

(With inputs from agencies.)