Jabal Omar inks MoU with Umm Al Qura on potential merger

Jabal Omar Development Co., the developer of Makkah, has inked a nonbinding six-month memorandum of understanding (MoU) with Umm Al Qura for Development & Construction Co. on the two companies’ potential merger, the company said in a statement to Saudi bourse, Tadawul.

Each company will appoint a financial advisor to finalize the relevant studies as well as the due diligence review.

There is no immediate relevant financial impact as the merger deal is still under study.

The developer had earlier said it intends to support Umm Al Qura’s future expansions and activities, which include developing King Abdulaziz Road in Makkah.

Jabal Omar has several related parties including Public Pension Agency and General Organization for Social Insurance.