Finland’s Kone has agreed to purchase German rival TK Elevator in a landmark deal valued at 29.4 billion euros ($34.4 billion).

The combination would create the world’s largest elevator maker and marks one of Europe’s biggest takeover agreements in recent years.

Finland’s Kone has agreed to acquire 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 commented 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 earth. By uniting, we are laying the foundation for an even more innovative enterprise, well positioned for long-term success,” Kone CEO Philippe Delorme commented in a statement. This also touches on aspects of portfolio.

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

TK Elevator CEO Uday Yadav commented 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 humans, and the cities we serve. The best of our story lies ahead,” Yadav remarked.

Shares of German steel business Thyssenkrupp rose 8% on the news, paring gains having climbed as much as 14%.

TK Elevator became an independent business after separating from Thyssenkrupp in 2020. Private equity firms Advent and Cinven bought TK Elevator for around 17 billion euros at the time.

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. Furthermore, experts in wall street note the continued relevance.