RIYADH, Sept. 3 (Xinhua) -- The Public Investment Fund (PIF), the sovereign wealth fund of Saudi Arabia, announced Sunday the signing of a share purchase agreement to acquire a 100 percent shareholding in the Saudi Iron and Steel Company (Hadeed) from the Saudi Basic Industries Corporation (SABIC), the Saudi Press Agency (SPA) reported.
Based on a cross-conditional share exchange agreement, Hadeed will also acquire a 100 percent shareholding in AI Rajhi Steel Industries Company (Rajhi Steel) from Mohammed Abdulaziz AlRajhi and Sons Investment Company (Rajhi Invest) in exchange for newly issued shares in Hadeed.
The deals will bring together PIF's financial capabilities and industry experience with Hadeed and Rajhi Steel's leading technical and commercial expertise to create a national champion in Saudi Arabia's steel sector, Deputy Governor and head of MENA Investments at PIF Yazeed A. Al-Humied was quoted as saying.
The transactions are in line with PIF's broader efforts to accelerate Saudi Arabia's industrial development and will contribute to meeting the kingdom's growing demand for steel and improving its steel production capabilities, the report said.
Furthermore, the deals will contribute to the growth of key downstream sectors, such as local construction, automotive, utilities, renewables, transportation, and logistics, in line with Saudi Vision 2030, it added.
The transactions are part of PIF's wider strategy focusing on developing 13 strategic sectors, including the metals and mining sector, according to the SPA.
