Al Taiseer Group Talco Industrial Company (TALCO) has signed a preliminary agreement to acquire Eastern Aluminum Extrusion Factory.

Under the non-binding memorandum of understanding (MoU), the company will undertake feasibility studies and conduct financial and legal due diligence, the company said in a statement to the Saudi stock exchange. 

The MoU has a duration of nine months, effective from the date of signing, and may be extended upon written agreement.

This month, TALCO announced a new strategic plan that included exploring mergers and acquisitions with national and regional companies. The plan also focuses on building partnerships and joint ventures to develop products and expand manufacturing capabilities. 

Eastern Aluminum Extrusion Factory, established in 2009, is located in Dammam and has a total capacity of 40,000 tonnes per year, according to the company’s website.

(Editing by Anoop Menon) (anoop.menon@lseg.com) 

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