Finnish elevator and escalator manufacturer Kone has agreed to acquire German competitor TK Elevator in a deal valued at approximately $34.4 billion, marking one of the largest transactions in the industrial sector this year.

Under the terms of the agreement, Kone will pay the consortium that currently owns TK Elevator around €5 billion in cash plus up to 270 million newly issued Kone shares. The transaction represents a significant consolidation move in the global elevator and escalator industry.

TK Elevator is currently owned by a private equity consortium. The acquisition would combine two major players in the vertical transportation market, potentially creating a stronger competitor to established industry leaders.

The deal comes as the elevator industry continues to recover from pandemic-related disruptions and seeks growth opportunities in urban development and modernization projects worldwide. Both companies operate globally, with significant presence in Europe, Asia, and North America.

The transaction is subject to regulatory approvals and customary closing conditions. If completed, the acquisition would significantly expand Kone's market presence and service capabilities in the elevator and escalator sector.