GAC approves City Cement’s acquisition of Umm Al-Qura Cement

Logos of Umm Al-Qura Cement (UACC) and City Cement Co. (CCC)

The General Authority for Competition (GAC) issued, on Dec. 30, its non-objection on the completion of the economic concentration, resulting from the acquisition of Umm Al-Qura Cement by City Cement Co., both companies announced on Tadawul.

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In separate statements, the two cement producers said that the transaction remains subject to a number of other conditions, including obtaining the approvals from the Capital Market Authority (CMA) the Saudi Exchange and respective shareholders. It is also subject to other conditions outlined in the implementation agreement.

Any updates in this regard will be announced in a timely manner.

According to data compiled by Argaam, the two companies announced in October signing a share-swap agreement, under which City Cement will offer to acquire all Umm Al-Qura shares in exchange for newly issued shares in City Cement.

This will be based on a swap ratio of 1.11 new shares in City Cement for each Umm Al-Qura Cement share.