Saudi Binladin to be downsized, renamed: report

Saudi Binladin Group will be slimmed down and renamed, Reuters reported, citing sources familiar with the matter.

The moves would be the first in a broad restructuring planned for Saudi Arabia’s biggest builder as Riyadh takes a stake of at least 35 percent after the government seized management control from family members that were swept up in an anti-graft drive back in November. 

The restructuring, expected to include hundreds of layoffs, is intended to streamline operations at the conglomerate, which has spawned more than 500 units ranging from construction to energy since its formation in 1931, sources said.

As part of the reorganization, a new holding company will be formed with a new name.

The 537 business units under the current company set-up would be rationalized, which could include them being sold off, wound down or merged. The remaining units will be placed under the new structure, a source said.

Among the units expected to remain under the new holding company will be a contractor that will retain the Saudi Binladin name as well as operational maintenance, real estate, energy and advanced technology and business investments, two sources said.