SABIC sells steel unit Hadeed to Public Investment Fund for $3.33 billion

Monday, 04 September 2023 15:38:03 (GMT+3)   |   Istanbul

On September 3, Saudi Arabia’s Public Investment Fund has announced the signing of a share purchase agreement to acquire a 100 percent shareholding in Saudi Iron & Steel Co., also known as Hadeed, Saudi Arabia's largest steel manufacturer and market leader, from the Saudi Basic Industries Corp.

According to details of the announcement, the purchase agreement is valued at SAR 12.5 billion ($3.3 billion) and is scheduled to be concluded by the end of the first quarter of 2024, although the exact sale price will not be determined until then. In addition, according to the release, Sabic's steel unit Hadeed would purchase Al Rajhi Steel Industries Co. in return for shares.

As a result of these deals, the PIF aims to leverage its financial skills and industry experience, as well as Hadeed and Rajhi Steel's technical and commercial ability, to create a national champion in Saudi Arabia's steel sector, which will further strengthen Saudi Arabia's position as a global player in the sector and contribute to the development and strength of the nation's steel industry.

HilalHoloğlu
Hilal Holoğlu
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With over four years of experience in the steel industry and an academic background in Politics and Economics from the University of Milan, I work as a Market Analyst at SteelOrbis. I mainly cover flat and long steel products, with a focus on Turkey, Eastern Europe and the Middle East. My work involves analyzing price movements, market sentiment and supply-demand developments across these regions.

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