ArcelorMittal JV in Saudi Arabia Completed Acquisition of JESCO
The closing of the deal has resulted in creation of the Middle East region’s largest producer of seamless pipes.
SEATTLE (Scrap Monster): ArcelorMittal Tubular Products Jubail (AMTPJ)- ArcelorMittal’s joint venture project with the Public Investment Fund (PIF) announced that it has completed acquisition of Jubail Energy Services Company (JESCO) from TAQA Industrialization and Energy Services Company. The transaction reiterates the company’s commitment to Saudi Arabia. Furthermore, it combines the country’s two leading tubular products manufacturers.
The closing of the deal has resulted in creation of the Middle East region’s largest producer of seamless pipes. The combined entity is believed to have an annual production capacity of around 1 million tonnes. The deal is expected to result in improved synergies and reduce cost of operations. Furthermore, it will provide multiple benefits to AMTPJ’s shareholders as well as customers including Saudi Aramco.
With this, ArcelorMitttal’s shareholding in AMTPJ will reduce to approximately one-third, whereas PIF’s shareholding will correspondingly increase to nearly two-thirds.
Gabriel Monti, incoming CEO, AMPTJ noted that the transaction intends to capture all synergies, which in turn will strengthen its competitiveness.
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