PIF’s acquisition of Hadeed to create largest entity in Arab World's iron industry: Al-Khorayef

Minister of Industry and Mineral Resources Bandar bin Ibrahim Al-Khorayef 

Minister of Industry and Mineral Resources Bandar bin Ibrahim Al-Khorayef stated that the Public Investment Fund’s (PIF) takeover of Saudi Iron & Steel Co. (Hadeed) is a key step for the future of the iron and steel industry in the region, adding that it will lead to the establishment of the largest entity in iron industry in the Arab world with a capacity exceeding 7.5 million tons annually.
 

He also pointed out that this step comes in light of the Ministry’s support for investment efforts in the private sector and to meet the expected growth in the Kingdom’s need for iron, especially in shipbuilding, as well as the requirements of the oil and gas industry and other industries targeted by the Kingdom, and to contribute to supporting the Kingdom's non-oil exports, Saudi Press Agency reported.
 

According to Argaam's data, PIF signed a share purchase agreement (SPA) to acquire 100% of 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.