Saudi Arabia’s sovereign wealth fund is set to create a new national steel giant with the acquisition of the metals unit of chemicals maker Saudi Basic Industries Corp. for an enterprise value of 12.5 billion riyals ($3.3 billion).
The Public Investment Fund will acquire Saudi Iron & Steel Company from Sabic, as the chemicals firm is known. In a separate deal, Sabic’s steel unit Hadeed will acquire AlRajhi Steel Industries Co. in exchange for stock, according to a statement. The deal is expected to close before the end of the first quarter of 2024 and the final sale price will only be finalized then.
Sabic stock rose 1.92% to a high of 90.1 riyals a share before paring gains.
Read the full story on Bloomberg here.