Schindler sees customer, hiring opportunities in Kone-TKE merger

Schwab Strategic Tr Us Tips ETF

Schwab Strategic Tr Us Tips ETF

SCHP

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Sees chances to win customers during rivals' integration

Competition authorities likely to scrutinise the merger

Ready to discuss divested assets if regulators require sales

By Emanuele Berro

- Lift maker Schindler SCHP.S sees opportunities to win customers, recruit staff and potentially acquire assets as rivals Kone KNEBV.HE and TK Elevator seek regulatory approval for their planned merger, Chief Executive Paolo Compagna told Reuters on Tuesday.

Compagna said the proposed combination was likely to face scrutiny from competition authorities in multiple jurisdictions and could create disruption for both customers and employees during what would be a complex integration process.

"Would we be ready to talk and to see and to listen? Well, let's see, yes," Compagna said when asked whether Schindler could be interested in any assets divested as part of a regulatory review, while stressing that such a scenario remained uncertain.

Finland-based Kone KNEBV.HE agreed to buy its German rival TK Elevator for €29.4 billion in April, a deal that would create ​the world's largest lift maker.

Schindler has been one of the deal's most vocal critics. Compagna said in March, when merger talks first emerged, that the company would challenge any tie-up before antitrust authorities, arguing that it would trigger a "bloodbath" across the industry.

On Tuesday, he reiterated Schindler's view that the merger could create opportunities for rivals to gain market share and attract talent while Kone and TK Elevator focus on integrating their operations.

The Lucerne-based company reported on Tuesday second-quarter sales below market expectations, dragged by a persistently sluggish Chinese market and currency effects.