Kone has agreed to combine with Germany-based rival TK Elevator in a cash and share transaction that would create one of the world’s largest elevator and escalator companies.

According to Kone’s stock exchange release today, the combined group would generate around €20.5 billion in annual sales and more than €2.7 billion in adjusted EBIT, based on the latest financial year. Around 65 percent of revenue would come from service and modernization activities.

The total transaction value is about €29.4 billion, including debt. Finnish public broadcaster Yle reports that the deal would be Finland’s largest corporate transaction to date.

Under the agreement, Kone will acquire TK Elevator through its holding structure. The sellers, a consortium led by Advent and Cinven, will receive €5 billion in cash and up to 270 million newly issued Kone class B shares. Following completion, they would hold roughly 33.8 percent of Kone’s shares and 18.3 percent of voting rights.

Leadership of the combined company will remain with Kone. Philippe Delorme will continue as CEO, Ilkka Hara as CFO, and Antti Herlin as chairman. Herlin is expected to retain over 50 percent of voting rights, ensuring control.