ISLAMABAD: The Competition Commission of Pakistan (CCP) has granted approval to three mergers concerning M/s Saudi Iron and Steel Company (Hadeed), having a presence in Pakistan’s steel market, says a press release.
The overall transaction comprises restructuring of two entities divided into three stages of transactions.
Based in the Saudi Arabia, Hadeed is a well-established company, producing a range of steel products. It deals in spot sales in Pakistan’s steel market and exports to Pakistan through international traders.
Initially, M/s The Public Investment Fund (PIF) sent a pre-merger application to CCP to acquire 100 percent shareholding of Hadeed from M/s Saudi Basic Industries Corporation (SABIC). PIF is a sovereign wealth fund of Saudi Arabia and known for its diverse investments in various sectors globally. PIF has entered into a share purchase agreement with SABIC, under which SABIC agrees to sell its entire share capital of Hadeed to PIF.
Moving on the next step, Hadeed was to acquire 100 percent shareholding of Al Rajhi Steel Industries Company from M/s Mohammad Bin Abdulaziz Al Rajhi & Sons Investment. Al Rajhi Steel, established in 1978, is a subsidiary of Al Rajhi Invest and is known for its steel manufacturing capabilities in Saudi Arabia.
This involved a share exchange agreement between Hadeed and Al Rajhi Invest.
In the third stage, PIF intends to dispose off its 44.5 percent shareholding in Hadeed to M/s Mohammad Bin Abdulaziz Al Rajhi & Sons Investment thus sharing control over Hadeed and Al Rajhi Steel for improving their respective production capabilities and increasing their operational efficiency.
These transactions, as per the information available, are not anticipated to raise any competition concerns in the relevant market.
The steel sector in Pakistan is one of the most important industries in the country. It plays a vital role and with investments it can help raise the GDP and bring benefits to both the economy and investors.
CJP Justice Yahya Afridi convenes meeting of Judicial Commission of Pakistan on December 6
VPN demand escalated further on November 26, reaching 213% above baseline
Rehman declared that current government is a product of electoral manipulation
CM mentioned that priority measures are being taken to bridge gap between state and youth of Balochistan
