Arabian Cement Bahrain, a subsidiary of Saudi cement producer Arabian Cement Company (ACC), has signed a memorandum of understanding with Jordan sector company Ready Mix Concrete and Construction Supplies (RMCCS), under which Arabian Cement Bahrain will acquire a 36 per cent stake in RMCCS for SAR143m (US$38.3m), it was reported on November 19, 2007.
Some 60 pct of the funds for the acquisition will come as a loan and the remaining will be own financing.
No further details regarding the deal were made available.
RMCCS, traded on the First Market of the Amman Stock Exchange (ASE), is active in the production of ready mix concrete, and supporting equipment, blocks, and steel structures. The company is reportedly the second largest player on the Jordanian ready mix concrete market.
ACC based in Jeddah, western Saudi Arabia, was established in 1955 and is one of the eight listed cement companies operating in the Kingdom.
ACC registered an increase in net profit to 93.2 mln riyals ($24.9 mln/17 mln euro) for the first three months of 2007, from 89.5 mln riyals ($23.9m) a year ago.