Toshiba Weighs Reducing Elevator Unit Stake as Kone Circles

Why It Matters

A sale would accelerate consolidation in the global elevator market and give Kone a stronger foothold in Japan’s aging, service‑heavy lift infrastructure, potentially boosting margins and shareholder value.

Key Takeaways

• Toshiba may sell part of its 80% elevator stake
• Kone already holds just under 20% and seeks more
• Deal could reshape Japan’s elevator market consolidation
• Other buyers also eye Toshiba Elevator stake
• Kone’s balance sheet supports sizable acquisition

Pulse Analysis

Toshiba Elevator & Building Systems, a joint venture that dates back to a 1998 strategic alliance, commands a dense installed base across Asia, including iconic projects like Shanghai World Financial Center and Tokyo Skytree. The unit’s aging fleet presents a steady pipeline for modernization services, a segment that traditionally yields higher margins than new equipment sales. By potentially reducing its ownership, Toshiba could unlock capital for its broader conglomerate operations while inviting a more focused owner to drive growth.

Kone’s pursuit reflects a broader trend of consolidation among elevator manufacturers seeking scale and geographic diversification. With a market value near €33 billion, Kone possesses the balance‑sheet flexibility to finance a sizable transaction, which would elevate its presence in Japan—a market characterized by stringent local ownership sensitivities but lucrative service contracts. Analysts note that a deeper Kone stake could accelerate the rollout of IoT‑enabled maintenance platforms, enhancing uptime for an aging fleet and reinforcing recurring revenue streams.

If the deal materializes, investors should anticipate shifts in competitive dynamics. Kone’s expanded footprint could pressure rivals like Otis and Schindler to explore similar cross‑border acquisitions or joint ventures. Meanwhile, other interested parties may spark a bidding war, potentially inflating the valuation of Toshiba’s elevator business. The outcome will influence not only share price movements for both Toshiba and Kone but also set a precedent for future M&A activity in the high‑growth, service‑intensive vertical lift sector.

Toshiba Weighs Reducing Elevator Unit Stake as Kone Circles

February 17, 2026 at 10:10 AM UTC · Updated on February 17, 2026 at 11:50 AM UTC

Takeaways (Bloomberg AI)

• Toshiba Corp. is considering reducing its stake in its elevator unit amid interest from Finland's Kone Oyj, people with knowledge of the matter said.

• Kone has spoken with potential advisers about the possibility of increasing its stake in Toshiba Elevator and has held initial discussions with the Japanese group to express its interest.

• Deliberations are at an early stage and there's no certainty of a deal, according to the people, who also said other potential buyers could be interested in the stake.

Toshiba Corp. is considering reducing its stake in its elevator unit amid interest in the business from Finland’s Kone Oyj, people with knowledge of the matter said.

The Japanese conglomerate could make a decision soon about whether to proceed with a divestment of part or all of its roughly 80 % stake in Toshiba Elevator & Building Systems Corp., the people said. It may first sell a smaller stake in the elevator business before eventually offloading a larger holding, one of the people said.

Finnish elevator maker Kone has spoken with potential advisers about the possibility of increasing its stake in Toshiba Elevator and has held initial discussions with the Japanese group to express its interest, the people said. Kone already owns just under 20 % of Toshiba Elevator.

Kone’s class B shares rose as much as 2.6 % in Helsinki trading Tuesday. They were up 1.3 % at 12:52 p.m. local time, giving the company a market value of about €33 billion ($39 billion).

The interest shows Kone’s appetite for scale and consolidation, Bloomberg Intelligence analysts including Omid Vaziri wrote in a note Tuesday. Any move toward control of Toshiba Elevator would likely be gradual given local ownership sensitivities, they said.

“Kone has balance‑sheet flexibility to make a sizable deal,” they wrote. “Japan offers a dense installed base and an aging fleet driving modernization in a service‑heavy market that’s supportive of margin.”

Other potential buyers could also be interested in the stake. Deliberations are at an early stage and there’s no certainty of a deal, according to the people, who asked not be identified because the information is private.

Representatives for Kone and Toshiba declined to comment. A spokesperson for Japan Industrial Partners Inc., the buyout firm that controls Toshiba, also declined to comment.

Kone, founded in 1910 and with more than 60,000 employees globally, reported revenue of €11.2 billion last year. The Helsinki‑listed company operates in close to 70 countries, its website shows.

Kone entered a strategic alliance with Toshiba Elevator in 1998. They reached a share purchase agreement in 2001 and Kone has held a stake ever since. Toshiba Elevator’s products are used in the Shanghai World Financial Center, Taipei 101 in Taiwan and Tokyo Skytree.

Kone explored a possible bid last year for former Thyssenkrupp AG unit TK Elevator, which is now pursuing an initial public offering in Frankfurt.