German building materials giant Knauf International GmbH has secured the green light for its partial takeover of Saudi-based United Mining Industries Company (UMI). 

The deal to acquire 63.2% stake in UMI for SAR 504.49 million ($134.5 million) received a non-objection certificate from the General Authority for Competition (GAC), the Saudi firm confirmed on Wednesday.

Lazard has been acting as financial advisor to Knauf in this transaction, while AS&H Clifford Chance has been serving as legal counsel.

Knauf intends to acquire the rest of the stake in UMI once the initial transaction is complete. Headquartered in Jeddah, UMI is a manufacturer of gypsum and building materials and serves other Middle East markets other than Saudi.

Knauf has been active in the Middle East for 30 years. The acquisition marks Knauf’s strategic entry into the Saudi market and aligns with Saudi Vision 2030’s industrial localisation goals.

Knauf Group is a family-owned company and is the world's leading producer of gypsum-based construction materials and systems, energy-efficient insulation, and system solutions for ceilings. It operates more than 300 production sites and sales organisations in over 90 countries on all continents.

(Writing by Cleofe Maceda; editing by Seban Scaria)