Saudi Basic Industries Corporation (SABIC) has signed an agreement to sell its subsidiary Saudi Iron and Steel Company (Hadeed) to the Public Investment Fund (PIF), subject to usual approvals from the relevant authorities and the satisfaction of certain conditions. The transaction is slated to be completed before the end of Q1 2024.
At the same time, in line with a cross-conditional share exchange agreement, Hadeed will purchase a 100% stake in Al Rajhi Steel Industries Company (Rajhi Steel) from Mohammed Abdulaziz Al Rajhi & Sons Investment Company (Rajhi Invest). This move will incorporate newly issued shares in Hadeed.
Hadeed will purchase a 100% stake in Al Rajhi Steel Industries Company (Rajhi Steel)
“These transactions will bring together PIF’s financial capabilities and industry experience with Hadeed and Rajhi Steel’s leading technical and commercial expertise, to create a national champion in Saudi Arabia’s steel sector. They also build on PIF’s mandate to establish new strategic partnerships in order to enable the private sector,” explained PIF Head of MENA Investments and Deputy Governor Yazeed A Al-Humied.
According to PIF, the two transactions conform with its endeavors to hasten industrial development while helping meet the intensifying demand for steel and improving steel production capabilities in the Kingdom.
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