Arabian Cement, Al Safwa extend exclusivity deal for potential merger

Arabian Cement Co. has extended its exclusivity agreement with Al Safwa Cement Co. related to their potential merger until Dec. 21, 2017.

During this period, both companies will refrain from discussing purchase terms with any other party for a potential merger or acquisition, Arabian Cement said in a bourse statement on Thursday.  

The extension comes as Arabian Cement is still gathering some data required by Al Safwa Cement to present an initial, non-binding offer, the Saudi-listed cement producer added.

No agreements have been signed yet related to a merger; therefore, no specific conditions or timeframe have been set.

The deal has no related parties except for Arabian Cement board member Ibrahim Aba-Khail, representative of the Public Pension Agency, which has a 25 percent stake in Al Safwa Cement. Accordingly, Aba-Khail will not vote on the deal.

Arabian Cement will only announce further updates if an initial, non-binding agreement is signed, the statement added.

In October, the cement company started preliminary merger talks with AlSafwa Cement Co. and signed an exclusivity agreement in this regard.