Finnish elevator giant Kone is preparing to buy out a competitor, in a deal set to become the largest corporate acquisition in Finnish history, according to Helsingin Sanomat.
Citing news outlet Bloomberg, HS reported that the planned merger between Kone and its competitor TK Elevator is in its final stages. A deal may be announced as early as Wednesday, according to Bloomberg.
The share-cash deal, which includes TK Elevator’s debts, is reportedly worth around 29 billion euros. HS noted that the actual purchase price would be lower than that sum.
The daily also pointed out that if it goes through, the acquisition would be the largest in Finnish history — and also make Kone the world’s largest elevator company.
TK Elevator used to be the elevator division of German industrial engineering giant ThyssenKrupp, HS explained. However, facing financial problems, ThyssenKrupp sold off its lift business in 2020, as Kone was already interested in acquiring it back then.
However, the TK ended up being held by two investment companies, Advent and Cinven, who are now looking to divest, the paper explained.
Finland’s sinking house prices
The cost of buying a detached house in the countryside is often more expensive in Estonia than in Finland, according to Hufvudstadsbladet.
The Swedish-language daily noted that detached housing prices in Finland have been falling since 2020. On average, it said houses are worth around 72 percent of what they were in 2020.
At the same time, some experts say there might be indications of improvement on the horizon for Finland, according to the paper.
“In some places, prices have fallen so low that houses in certain segments are now more expensive in Estonia,” HBL explained.
The paper pointed to a review by Estonian public broadcaster ERR that examined house prices on real estate websites in both countries.
Citing a survey by Luminor Bank in April, the broadcaster said that potential homebuyers in Estonia are willing to pay around 500 euros a month for a mortgage.
“With a 20-year term and 15 percent down payment, that points to a home price around 100,000 euros,” ERR explained.
It said that Finnish real estate site etuovi.com offered more than 900 properties in that price bracket. At the same time, the Estonian kv.ee website offered only 185 properties meeting that criteria.
The gap is even bigger when comparing ‘newer’ homes built in this century, it said.
“The Finnish portal has 90 listings in that price bracket; Estonia has just two, plus a few summer cottages,” the broadcaster noted.
Marko Vierto, from Finnish real estate firm Huoneistokeskus, told ERR that several factors are at play. One, fewer younger people are looking for older houses in Finland’s countryside. Two, banks have gotten more restrictive about handing out loans for properties needing a lot of work.
The situation is different in Estonia, as sellers are not typically in a hurry to agree to price reductions even when their property has been on the market for some time.
Erotic bingo night violence
A person was stabbed at a bar in Nokia on Tuesday night, according to newspaper Iltalehti.
According to a Central Finland police department statement, the victim was seriously injured and taken to hospital for treatment.
Police have detained a suspect in the violent incident. The case is currently being investigated as attempted manslaughter, with the paper noting the criminal heading may change as the preliminary probe continues.
Emergency services were called about the incident at Ale Pub Mexas, at 8:03pm on Tuesday. Several police and rescue units responded.
According to its Facebook page, the pub was scheduled to hold an ‘erotic bingo’ evening at 8pm on Tuesday.
Iltalehti published video footage taken by an eyewitness near the scene, which apart from the authorities’ vehicles on the ground, also showed a yellow rescue helicopter hovering above the area.
An eyewitness said the bar was evacuated after the incident unfolded.
