Finland’s Kone to buy German rival TK Elevator in blockbuster $34.4 billion deal

Finland's Kone has agreed to buy German rival TK Elevator in a deal valued at 29.4 billion euros ($34.4 billion), marking one of Europe's biggest takeover agreements in recent years.

The cash and share agreement, which had been rumored in recent days, would create the world's largest elevator maker, overtaking rivals such as U.S.-based Otis and Switzerland's Schindler.

Kone said the deal would result in estimated synergies of 700 million euros on an annual run-rate basis.

"For over a century, both KONE and TKE have successfully developed their businesses, in tandem with an urbanizing world. By uniting, we are laying the foundation for an even more innovative company, well positioned for long-term success," Kone CEO Philippe Delorme said in a statement.

Kone shareholders holding just over 40% of all outstanding shares and approximately 74.3% of total votes have agreed to support the deal, the company said.

TK Elevator CEO Uday Yadav said the two companies share a "deep respect" as he welcomed the announcement.

"Together we will bring the very best of both companies to our customers, our people, and the cities we serve. The best of our story lies ahead," Yadav said.

The proposed merger is expected to face industry scrutiny, with Schindler telling Reuters late last month that it was prepared to challenge any such deal before antitrust authorities.