Saudi Arabia’s Public Investment Fund (PIF) signed a share purchase agreement to acquire a 100 percent shareholding in the Saudi Iron & Steel Company (Hadeed) from the Saudi Basic Industries Corporation (SABIC), according to a PIF statement.

Based on a cross-conditional share exchange agreement, Hadeed will also acquire a 100 percent shareholding in AlRajhi Steel Industries Company (Rajhi Steel) from Mohammed Abdulaziz AlRajhi & Sons Investment Company (Rajhi Invest), in exchange for newly issued shares in Hadeed, the statement said.

Completing the agreements is subject to certain customary approvals from the relevant authorities and fulfillment of certain conditions in the transaction agreements.

PIF and Rajhi Invest’s shareholding in Hadeed will be finalised subject to the closing mechanics set in the agreements.

The statement said the transactions are in line with PIF’s broader efforts to accelerate Saudi Arabia’s industrial development and will contribute to meeting the growing local demand for steel and improving Saudi Arabia’s steel production capabilities.

Furthermore, the deal will contribute towards the growth of key downstream sectors, such as local construction, automotive, utilities, renewables, transport, and logistics, in line with Saudi Vision 2030.

In a separate statement on Sunday, SABIC said the PIF’s transaction to acquire 100 percent of Hadeed reflects an implied enterprise value of approximately SAR12.50 billion.

(Writing by D Madhura; Editing by Anoop Menon)

(anoop.menon@lseg.com)

Subscribe to our Projects' PULSE newsletter that brings you trustworthy news, updates and insights on project activities, developments, and partnerships across sectors in the Middle East and Africa.