Saudi Arabia’s new advanced industries firm Alat has bought a 15% stake in Germany’s TK Elevator and unveiled a 160 million euros ($166.62 million) joint venture for elevators and escalator solutions, the companies said on Monday.
Alat was launched by Saudi crown prince Mohammed bin Salman earlier in the month and is aimed at helping make the kingdom a global centre for electronics and advanced industries.
It will become a direct shareholder of TK Elevator and a member of the current investment consortium, the companies said in a statement, adding that the deal is expected to close by the third quarter.
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The joint venture will be headquartered in Saudi Arabia and aims to manufacture elevators, escalators and moving walks locally.
In 2020, Germany’s Thyssenkrupp closed a 17.2 billion euro sale of its elevator division, later renamed TK Elevator, to private equity firms.