Public Investment Fund acquires Hadeed from SABIC for $3.33b

RIYADH, Sept 03 (Arab News): The Public Investment Fund on Sunday announced the signing of a share purchase agreement to acquire a 100 percent shareholding in the Saudi Iron & Steel Co., also known as Hadeed, from the Saudi Basic Industries Corp.

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

In a separate statement to Tadawul, SABIC revealed that the transaction is valued at SR12.5 billion ($3.33 billion).

PIF further said that this transaction aligns with the fund's broader efforts to accelerate industrial development in the Kingdom and will also improve Saudi Arabia's steel production capabilities.