Saudi Ceramics signs LOI to build sanitaryware JV in Saudi Arabia

Logo of Saudi Ceramic Co.

Saudi Ceramic Co. (Saudi Ceramics) signed on April 15 a letter of intent (LOI) with Eczacıbaşı Yapı Gereçleri A.Ş. (EYAP), an affiliate of Turkey’s Eczacıbaşı Group, the company said in a statement to Tadawul.

Both parties will study the establishment of an equally owned joint venture (JV) in Saudi Arabia, specializing in the manufacture and sale of sanitaryware and its accessories.

In case of an agreement, all factories and assets of Saudi Ceramics’ sanitaryware segment will be transferred to the new company, according to the LOI.

The LOI is valid for six months from the date of signing and can be renewed.

The ceramic producer said it is currently difficult to estimate the relevant financial impact until all the necessary studies are completed and an agreement is concluded.

There are no related parties to the deal, it added.

Both parties will carry out due diligence from all relevant aspects, perform necessary assessments, finalize the negotiations, sign the relevant agreements, and apply to get the required approvals. No external advisor has been yet appointed.

Any material events in this regard will be announced.

Eczacıbaşı Group owns a segment for building materials and sanitaryware with a number of brands, mainly Vitra. Its products have a wide reach worldwide. The group owns factories for sanitaryware and accessories inside and outside Turkey.