Schindler is not going to watch quietly. CEO Paolo Compagna told Reuters on Tuesday that Schindler is prepared to challenge a potential KONE-TK Elevator merger before antitrust authorities. He called the proposed combination a "bloodbath" that would force the merged entity to reconcile overlapping customer bases, production facilities, and field teams across dozens of countries.
"I'm sure that we would not be the only one going and making sure that this antitrust will be checked in every possible country," Compagna told Reuters. He predicted that any merger would take multiple years to close and would presumably require significant divestitures.
Compagna, who took over as Schindler CEO in April 2025 after Silvio Napoli's departure, is facing the biggest competitive threat of his tenure. KONE entered advanced negotiations to acquire TK Elevator in a cash-and-stock deal valued at up to 25 billion euros, Bloomberg reported on March 16. The deal would merge the number three and number four global elevator companies, creating a combined entity with annual revenue exceeding 19 billion euros and a service portfolio rivaling Otis for the top global position.
The antitrust argument is straightforward. KONE and TK Elevator hold overlapping market positions across Europe, North America, and Asia-Pacific. In several European markets, a combined KONE-TKE would command more than 50 percent market share. European Commission scrutiny is considered near-certain. Schindler's willingness to formally intervene as a competitor adds regulatory friction that could delay or reshape the deal's terms.
TK Elevator is owned by a consortium led by Advent International and Cinven, which acquired the company from Thyssenkrupp in 2020 for 17.2 billion euros. Additional co-investors include RAG-Stiftung, the Abu Dhabi Investment Authority, GIC, and Thyssenkrupp AG, which retained a minority stake. Saudi Arabia's Alat acquired a 15 percent stake more recently. The owners had been preparing a Frankfurt IPO valued at up to 29 billion dollars before KONE's approach shifted the exit strategy.
For the North American elevator trade, Schindler's opposition matters beyond the boardroom. If regulators force divestitures as a condition of approval, specific service territories, customer contracts, and field operations could change hands. Independent contractors and union locals should be watching this closely. The Big Four dynamic that has defined the industry for decades is being actively renegotiated, and Schindler just made clear it intends to shape the outcome.