Saudi Ceramics signs non-binding LOI to establish sanitaryware firm

Logo of Saudi Ceramic Co.

Saudi Ceramic Co. (Saudi Ceramics) announced that it signed a preliminary, non-binding letter of intent (LOI) with Eczacıbaşı Yapı Gereçleri A.Ş. (EYAP), an affiliate of Turkey’s Eczacıbaşı Group, to establish a company specializing in the manufacture and sale of sanitaryware and its accessories.

During the term of the agreement, the two companies will complete the due diligence review, conduct the necessary assessments and final negotiations, sign the relevant agreements, and submit them to the relevant authorities to obtain the required approvals, the company said in a statement to Tadawul.

On April 15, the two parties inked a LOI to 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.