Home Industry Manufacturing Saudi’s PIF to create steel giant with $3.3bn Sabic deal The deal is expected to close before the end of the first quarter of 2024 by Bloomberg September 4, 2023 Image credit: PIF/Twitter Saudi Arabia’s sovereign wealth fund, Public Investment Fund (PIF) is set to create a new steel giant with the acquisition of the metals unit of chemicals maker Saudi Basic Industries Corporation (Sabic) for an enterprise value of SAR12.5bn ($3.3bn). The PIF will acquire Saudi Iron and Steel Company from Sabic, as the chemicals firm is known. #PIF announced the signing of a share purchase agreement to acquire a 100% shareholding in the Saudi Iron & Steel Company (Hadeed) from the Saudi Basic Industries Corporation (SABIC). pic.twitter.com/V3fBKJEpwe — Public Investment Fund (@PIF_en) September 3, 2023 In a separate deal, Hadeed, Sabic’s steel unit, will acquire AlRajhi Steel Industries in exchange for stock, according to a statement. Highlights from #PIF, SABIC and Rajhi Invest’s announcement of a national champion in the Saudi Arabian steel industry. pic.twitter.com/P6SI8jFWhD — Public Investment Fund (@PIF_en) September 3, 2023 PIF’s expansive footprint The deal is expected to close before the end of the first quarter of 2024. The accord is the latest sign of the Saudi wealth fund’s growing influence over the Arab world’s largest economy. The PIF is responsible for most of the country’s projects intended to help diversify away from its reliance on oil sales, including developing an auto-manufacturing hub, tourism projects and building vast new cities. “These transactions 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,” said Yazeed Al-Humied, the PIF’s deputy governor and head of Middle East and North Africa investments. Tags AlRajhi Steel Industries PIF Public Investment Fund SABIC 0 Comments You might also like Saudi Aramco reports 15% drop in Q3 profit, maintains dividend Saudi Arabia’s PIF to acquire 54% stake in MBC Group Saudi PIF signs MoUs with Japanese lender worth up to $51bn Saudi Arabia’s Hassana to back $2bn Brookfield Middle East fund