PIF, SABIC, and Rajhi Make investments announce strategic merger in Saudi Arabian metal trade

by ADeeL

Saudi Gazette report

RIYADH — In a major growth for the Saudi Arabian metal trade, the Public Funding Fund (PIF) has introduced the signing of a share buy settlement to accumulate a 100% shareholding within the Saudi Iron & Metal Firm (Hadeed) from the Saudi Fundamental Industries Company (SABIC).

Concurrently, Hadeed will purchase a 100% shareholding in AlRajhi Metal Industries Firm (Rajhi Metal) from Mohammed Abdulaziz AlRajhi & Sons Funding Firm (Rajhi Make investments). This trade entails newly issued shares in Hadeed.

The profitable completion of those transactions is topic to customary approvals from related authorities and circumstances stipulated within the transaction agreements.

The ultimate shareholding in Hadeed for each PIF and Rajhi Make investments will probably be decided in line with the closing mechanics outlined within the agreements.

These strategic transactions align with PIF’s broader aims to speed up Saudi Arabia’s industrial growth and cater to the rising native demand for metal, thereby enhancing Saudi Arabia’s metal manufacturing capabilities.

Moreover, they’ll bolster key downstream sectors, together with native development, automotive, utilities, renewables, transport, and logistics, in step with the imaginative and prescient set forth in Saudi Imaginative and prescient 2030.

These transactions will amalgamate Hadeed and Rajhi Metal, bringing collectively their world-class metal vegetation and unparalleled experience within the metal trade.

This union goals to spice up their respective manufacturing capabilities and operational effectivity.

Yazeed A. Al-Humied, deputy governor and head of MENA Investments at PIF, mentioned: “The metal trade is foundational to the Saudi economic system, its diversification, and its development.

“These transactions leverage PIF’s monetary capabilities and trade expertise along with Hadeed and Rajhi Metal’s main technical and industrial experience, making a nationwide champion in Saudi Arabia’s metal sector.

“They’re additionally in keeping with PIF’s mandate to determine strategic partnerships, additional enabling the non-public sector.”

Abdulrahman Al-Fageeh, CEO of SABIC, commented: “Through the years, Hadeed has considerably contributed to the development sector, city and civil growth within the Kingdom of Saudi Arabia, and the success and development of SABIC.

“Nonetheless, we acknowledge that Hadeed possesses untapped potential to turn into a serious participant within the GCC area’s iron and metal trade.

“Thus, it was crucial to search out the correct consumers who can unlock Hadeed’s full potential. The sale of Hadeed will enable SABIC to focus on its technique to turn into the popular world chief in chemical substances.”

Yazid Mohamed Al-Rajhi, board chairman of Rajhi Make investments, added: “At this time’s announcement marks a major milestone for Rajhi Make investments and Rajhi Metal.

“We’re excited to merge our capability and experience with that of PIF and Hadeed, positioning Hadeed to raised meet the evolving calls for of its prospects.”

These transactions align seamlessly with PIF’s broader technique, which features a deal with creating 13 strategic sectors, together with the Metals & Mining sector.

Source link

You may also like

Leave a Comment