Kone’s desire to acquire TK Elevator is almost like avoiding the “valley of death”. Kone’s Chinese market has evaporated, mainly due to China’s own real estate market issues. Remote work has, at least for now, undermined the foundation of new office construction here in the West. That is why Kone has no other choice but to buy TK Elevator and pay whatever the majority investors are asking. However, Kone has the perfect capability to transform TK Elevator’s customer base into an incredibly profitable service business. Elevator maintenance and modernization are simply so much more profitable than new equipment sales. Furthermore, as the current geopolitical situation is expected to persist for a long time, investments are being pushed further into the future.
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