PIF signs SPA deals to acquire Hadeed, Rajhi Steel

The Public Investment Fund (PIF) signed a share purchase agreement (SPA) to acquire 100% of Saudi Iron & Steel Co. (Hadeed) from Saudi Basic Industries Corp. (SABIC).

Based on a cross-conditional share exchange agreement, Hadeed will acquire a 100% stake in AlRajhi Steel Industries Co. (Rajhi Steel) from Mohammed Abdulaziz AlRajhi & Sons Investment Co. (Rajhi Invest), in exchange for newly issued shares in Hadeed, PIF said in a statement.

The transactions are subject to certain customary approvals from the relevant authorities and satisfaction of certain conditions in the agreements.

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

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

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

The transactions are in line with PIF’s wider strategy to focus on the development of 13 strategic sectors, including the metals & mining sector.

Source : Argaam