PIF Announced Acquisition of SABIC’s Steel Unit

SEATTLE (Scrap Monster): The Public Investment Fund (PIF) announced that it has signed a share purchase agreement towards acquisition of Saudi Basic Industries Corp.’s steel subsidiary, Saudi Iron and Steel Company (Hadeed). The enterprise value of the deal is estimated at approximately $3.33 billion.

The transaction is expected to close by Q1 2024. The final transaction price will be revealed only around the date of completion of the deal. SABIC will use the proceeds from the sale to support the company’s growth in the chemicals industry. The sale will help SABIC to focus on its strategy to become the world’s preferred chemicals leader.

Commenting on the deal, PIF stated that the purchase transaction is in line with its broader efforts to accelerate industrial development in the Kingdom of Saudi Arabia. The deal will deliver significant improvement to the country’s overall steel production capabilities. The transaction will create one of the most significant iron and steel companies in the GCC region, said Yazeed A. Al-Humied, deputy governor and head of Middle East and North Africa investments, PIF.

Hadeed is a leading manufacturer of various steel products including reinforcing bars, coiled wire, billets, slabs, sections, and hot and cold rolled coils.

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