RIYADH, Sept. 3 (Xinhua) — The Public Investment Fund (PIF), the sovereign wealth fund of Saudi Arabia, announced on Sunday that it has signed a share purchase agreement to acquire 100 percent of the shares in the Saudi Iron and Steel Company (Hadeed) from the Saudi Basic Industries Corporation (SABIC), as reported by the Saudi Press Agency (SPA).
The agreement includes a cross-conditional share exchange agreement, under which Hadeed will also acquire 100 percent of the shares in AI Rajhi Steel Industries Company (Rajhi Steel) from Mohammed Abdulaziz AlRajhi and Sons Investment Company (Rajhi Invest). In return for the acquisition, newly issued shares in Hadeed will be given to Rajhi Steel.
Yazeed A. Al-Humied, Deputy Governor and head of MENA Investments at PIF, stated that these agreements will combine the financial capabilities and industry experience of PIF with the leading technical and commercial expertise of Hadeed and Rajhi Steel, creating a national champion in Saudi Arabia’s steel sector.
The report mentions that these transactions are part of PIF’s broader efforts to accelerate Saudi Arabia’s industrial development, and will play a role in meeting the country’s growing steel demand and enhancing its steel production capabilities.
In addition, the agreements are expected to contribute to the growth of key downstream sectors, such as local construction, automotive, utilities, renewables, transportation, and logistics, aligning with the goals outlined in Saudi Vision 2030.
According to the Saudi Press Agency, these transactions are part of PIF’s overall strategy to develop 13 strategic sectors, including the metals and mining sector.
Credit: The Star : News Feed
