The Competition Commission of India has approved the acquisition of shares of TKE Group by Alat Technologies and the formation of joint venture by Alat Technologies and the TKE Group.

The proposed combination relates to the: (a) indirect acquisition by Alat Technologies Company (ATC) of shareholding in Vertical Topco S.à r.l. (Vertical Topco), as a result of which ATC will acquire approximately 15% in the TKE Group (Proposed Topco Investment); and (b) the formation of a joint venture by ATC and the TKE Group (KSA JV) (Proposed KSA JV Transaction).

ATC is a wholly owned subsidiary of the Public Investment Fund (PIF), the sovereign wealth fund of Saudi Arabia. ATC is active globally and specializes in manufacturing: (a) semiconductors; (b) smart devices; (c) smart buildings; (d) smart appliances; (e) smart health; (f) advanced industrials; (g) next generation infrastructure; (h) electrification; and (i) artificial intelligence infrastructure.

Vertical Topco is a limited liability company incorporated under the laws of Luxembourg. Vertical Topco is the holding company of the TKE Group. The TKE Group is active globally (in more than sixty countries) in the installation, modernization and servicing of elevators, escalators, moving walks, passenger boarding bridges, and stairlifts, as well as related ancillary products and activities.

The proposed KSA JV will be active in the manufacture, supply, installation, and maintenance of vertical and horizontal transportation units (elevators, escalators, etc.) primarily in Saudi Arabia, and potentially in other countries of the MENA region.

Detailed order of the Commission will follow.

Competition approval for acquisition and joint venture between sovereign-backed investor and elevator manufacturer enables strategic market entry. The Competition Commission of India approved a combination in which Alat Technologies Company, a subsidiary of the Public Investment Fund, will indirectly acquire a minority shareholding in Vertical Topco, the holding company of the TKE Group, and will form a joint venture with the TKE Group (KSA JV) to manufacture, supply, install and maintain elevators, escalators and related transportation units primarily in Saudi Arabia and potentially other MENA countries.