Exclusive report - According to sources, Finland's Kone Corporation is preparing to sell TK Elevator's European business to address antitrust concerns.

Alexander Hübner/Christoph Steitz

Reuters Munich/Frankfurt Oct 1 - Kone is planning to sell most of TK Elevator's European business to address antitrust concerns over its planned (link) €29.4 billion ($33.3 billion) acquisition of its German rival, according to two sources familiar with the matter.

The sources said the sale process for TK Elevator's (TKE) European business—including elevators, escalators, and related services—is expected to start in the autumn, with one of the sources stating that it could begin in November.

Kone (KNEBV.HE) agreed in April this year to buy TKE from a group of investors led by Advent International and Cinven (CINV.UL), a deal which will create the world's largest elevator manufacturer.

"Since the announcement of the transaction, Kone and TKE have maintained close and constructive cooperation with regulatory authorities," Kone said in a statement. "We have always made clear that, in order to obtain regulatory approval, remedial asset divestitures may be required in certain regions."

Advent, Cinven, and TKE all declined to comment.

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