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National Building and Marketing Co (NBM) said it has cancelled the memorandum of understanding (MoU) for the purchase of a 50 percent stake in German Saudi Industrial Co for 200 million riyals ($53 million).
In a filing to the Saudi stock exchange Tadawul, the company cited lack of an agreement between the parties for cancelling the agreement.
NBM signed the MoU in February 2020 to purchase the stake as part of its strategy to diversify investments in industrial production projects. Since then it extended the MoU twice, in June and September, due to the COVID-19 pandemic related lockdowns.
In another update, NBM said it has completed the acquisition of the share capital of Ajeej Company with an estimated value of 180 million riyals.
NBM stock closed over 2 percent higher at 344 riyals Tuesday in a broadly higher market.
In December last year the company cancelled another MoU it had signed to acquire the entire capital of Etihad Al Kharj Metal Casting Co. as no agreement could be reached between the parties.
(Writing by Brinda Darasha; editing by Daniel Luiz)
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