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Saudi Arabian Sovereign Investment Fund Acquires 100% Shares of Saudi Iron and Steel Company from SABIC

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The Saudi Arabian Sovereign Investment Fund Acquires Saudi Iron and Steel Company

The Saudi Arabian Sovereign Investment Fund has recently announced that it has reached an agreement to purchase 100% of the shares of Saudi Iron and Steel Company (Hadeed) from Saudi Basic Industries Corporation (SABIC).

Acquisition of Al-Rajhi Steel Industries Company

In addition to the purchase of Hadeed shares, the Hadid company will also acquire the shares of Al-Rajhi Steel Industries Company Hadid Al-Raji, as per the terms of the agreements. This acquisition will involve 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.

Conditions and Permissions

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The fulfillment of conditions and the obtaining of official permissions from relevant authorities are necessary for these transactions to proceed. The ownership percentages of the State Investment Fund and Al-Raji for investing in the Hadid company will be determined based on the mechanisms specified in the relevant agreements.

Promoting Local Industry and Meeting Demand

These transactions align with the State Investment Fund’s efforts to enhance the development of the local industry and meet the increasing demand for metalworking products in various sectors such as construction, vehicles, service industry facilities, renewable energy, transport, and logistics services. This initiative is in line with the objectives outlined in the Kingdom’s Vision 2030.

Combining Capacities and Improving Efficiency

Through these transactions, the high-quality capacities of Hadid and Al Raji Steel will be combined. This will allow for the utilization of their administrative, technical, and commercial expertise in the Kingdom’s steel sector, ultimately leading to an increase in production capacity and improved operational efficiency.

Source: SPA

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