Alwasail signs agreement to acquire Shawcor CPS Middle East

Logo of Alwasail Industrial Co.

Alwasail Industrial Co. signed a purchase agreement, on June 12, to acquire the entire shareholding of Shawcor CPS Middle East Limited for SAR 2 million, the company said in a statement to Tadawul.

The transaction will be financed from the company's internal resources, with the financial impact likely to be realized starting from H1 2024.

The deal’s finalization is contingent upon several preconditions outlined in the purchase agreement, including securing approvals from pertinent government entities. The process also entails obtaining approval from the General Authority for Competition (GAC).

Shawcor CPS owns a 45,000 square meters integrated production plant, licensed in the second industrial zone in Dammam. The company is a branch of an international firm whose activities are manufacturing non-metallic products specialized in the field of oil and gas, the statement said.

The company owns a licensed factory land plot for production of composite pipe systems in the second industrial zone in Dammam, which will allow Alwasail to be in close proximity to its primary markets and help reduce logistical costs.

The transaction targets achieving the strategic objectives of Shawcor CPS, which seek to expand Alwasail’s business base by capitalizing the opportunities in the sector in accordance with its strategic plans.

The deal does not involve any related parties and any material developments will be announced in due course, the statement added.

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