Saudi Arabian Sovereign Investment Fund Signs Agreement to Buy Saudi Iron and Steel Company
The Saudi Arabian Sovereign Investment Fund announced that it has signed an agreement to buy 100% shares of Saudi Iron and Steel Company (Hadeed) from Saudi Basic Industries Corporation (SABIC).
Acquisition of Al-Rajhi Steel Industries Company
According to the Saudi press agency SPA, the Hadid company will simultaneously acquire, according to the terms of the agreements, the shares of Al-Rajhi Steel Industries Company Hadid Al-Raji for 100%. % of the investment company “Mohammed Abdulaziz Al-Raji and Sons” (Al-Rajhi Investment) in exchange for an increase in capital and a subscription to new shares of Hadid.
Fulfilling Conditions and Obtaining Permissions
SPA indicated that as part of these transactions, it is necessary to fulfill the conditions and obtain official permissions from the relevant authorities, since the percentage of ownership of each of the State Investment Fund and Al-Raji for investing in the Hadid company will be determined according to the mechanisms transactions specified in the relevant agreements.
Supporting Local Industry and Meeting Demand
The transactions will support the efforts of the State Investment Fund to promote the development of local industry and meet the growing local demand for metalworking products in the construction sector, vehicles, service industry facilities, renewable energy, transport and logistics services, in line with the goal of the Kingdom’s Vision 2030.
Combining Capacities and Improving Efficiency
These transactions will also combine the high quality capacities of Hadid and Al Raji Steel, as well as benefit from the administrative, technical, and commercial experience they have in the Kingdom’s steel sector, helping to increase production capacity and improve operational efficiency.