ISLAMABAD: The Competition Commission of Pakistan (CCP) has given its nod to three mergers involving Saudi Iron and Steel Company (Hadeed), a key player in Pakistan’s steel market. The comprehensive transaction involves the restructuring of two entities across three stages.
Hadeed, headquartered in Saudi Arabia, is a reputable company known for its wide range of steel products. It operates in Pakistan’s steel market through spot sales and exports facilitated by international traders.
Initially, the Public Investment Fund (PIF), a sovereign wealth fund of Saudi Arabia with diverse global investments, submitted a pre-merger application to acquire 100% shareholding of Hadeed from Saudi Basic Industries Corporation (SABIC). This agreement entails SABIC selling its entire share capital of Hadeed to PIF.
In the subsequent phase, Hadeed was to acquire 100% shareholding of Al Rajhi Steel Industries Company from Mohammad Bin Abdulaziz Al Rajhi & Sons Investment. Al Rajhi Steel, a subsidiary of Al Rajhi Invest established in 1978, is recognized for its steel manufacturing capabilities in Saudi Arabia. This step involved a share exchange agreement between Hadeed and Al Rajhi Invest.
In the final stage, PIF aims to divest its 44.5% shareholding in Hadeed to Mohammad Bin Abdulaziz Al Rajhi & Sons Investment, thereby sharing control over Hadeed and Al Rajhi Steel to enhance their production capacities and operational efficiency.
The steel sector holds significant importance in Pakistan’s economy, contributing significantly to GDP growth. With strategic investments, it has the potential to further bolster economic development and offer mutual benefits to both the economy and investors.
