Southern Province Cement and Yanbu Cement Co sign an MoU for amalgamation

Southern Province Cement and Yanbu Cement Co sign an MoU for amalgamation
24 June 2024

According to Saudi Exchange (Tadawul), Southern Province Cement Co announced the signing of a non-binding Memorandum of Understanding (MoU) with Yanbu Cement Co on 23 June 2024 to evaluate the feasibility of merging the two Saudi Arabian companies.

Both companies will commence due diligence, a comprehensive examination of operational, technical, financial, legal and actuarial aspects. This thorough approach ensures that all aspects of the merger are meticulously evaluated, providing a secure foundation for the proposed merger and instilling confidence in the process.

The proposed merger process, subject to the completion of due diligence and examination procedures, can potentially benefit companies and the industry. It is further conditioned upon reaching an agreement on the final terms and conditions of the merger agreement and obtaining regulatory approvals from the competent authorities and approval from the general assemblies of both companies. However, entering the MoU does not mean the companies will agree to the proposed merger.

Yanbu Cement Co (YCC), a Saudi joint stock company, is one of the major cement manufacturers in the country and the largest cement company in the western region. Its total installed capacity above 7Mta of clinker and cement dispatch capacity above 10Mta are testimony to its significant role in the industry. Its manufacturing facilities are located at Ras Baridi, on the coast of the Red Sea, 70km northwest of the Port of Yanbu. Yanbu Cement’s corporate office is located in Jeddah.

The Southern Region Cement Co has three plants in each of Jizan, Bisha and Tihama, with a total production capacity of 32,000tpd, and the company’s production covers the needs of the southern regions and part of the western region.

Published under Cement News