Otis Finalizes Deal to Fully Acquire Spanish Company

Otis Worldwide Corp. announced on December 21 it has finalized an agreement to purchase Madrid-based Zardoya Otis, a company in which it already had a partial stake. Otis’ subsidiary, Opal Spanish Holdings, reached an agreement to fully purchase Zardoya Otis in a deal valued at EUR3.39 billion (US$3.83 billion). The deal, which is still subject to Spanish Securities Exchange Commission approval, is expected to close in the second quarter of 2022. Otis originally announced the deal in September, saying it planned to purchase the remaining 49.99% of Zardoya, which is an elevator equipment and service business with operations in Spain, Portugal and Morocco. The transaction is structured as an all-cash voluntary tender offer with an intention to delist Zardoya Otis from the Madrid, Barcelona, Bilbao and Valencia stock exchanges. Since Otis is already the majority holder of Zardoya Otis and has operational control, there should be no significant change to the company’s employment as a result of this transaction. Otis President and Chief Executive Officer Judy Marks said, “The completion of the transaction will simplify the business structure, further strengthen our business and support a bright future for Otis, our customers and our colleagues in the region.”