Alat, the investment arm of the Public Investment Fund (PIF), Saudi Arabia's sovereign wealth fund, has bought 15% of Germany's TK Elevator GmbH. This is reported in a press release from TK Elevator.
Under the agreement, Alat will also establish a joint venture with TK Elevator worth 160 million euros and headquartered in Saudi Arabia to manufacture escalators and elevator equipment as part of construction projects.
The financial terms of the deal were not disclosed. The transaction is expected to be completed at the beginning of the third quarter.
In 2020, TK Elevator, formerly owned by Thyssenkrupp AG, was sold to a group of companies controlled by Advent International, Cinven, Abu Dhabi Investment Authority and the German RAG Foundation for 17.2 billion euros in one of the largest transactions in Europe.
The Public Investment Fund, with assets worth $1 trillion, is actively using its influence on foreign companies to attract investments to implement the ambitious Vision 2030 program aimed at diversifying the economy beyond the oil and gas sector.
Alat has assets worth $100 billion. In 2024, the company invested in convertible bonds issued by Chinese computer manufacturer Lenovo Group Ltd., which agreed to open a manufacturing facility and regional headquarters in Saudi Arabia. In addition, Alat has entered into a partnership agreement with SoftBank Group Corp. and a Chinese manufacturer of video surveillance equipment in order to create local production facilities.
Alat is a Saudi investment company controlled by the Sovereign Wealth Fund of Saudi Arabia. The company was founded in February 2024 and includes 7 main business units for the production of semiconductors, electronics and next-generation infrastructures.
TK Elevator is one of the largest manufacturers and suppliers of elevator equipment. The product range includes passenger and freight elevators, escalators and sidewalks, passenger bridges, as well as stair and platform lifts. The company is also engaged in the maintenance and modernization of installations. The headquarters is located in Dusseldorf (Germany).
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