LONDON: A consortium including Saudi Arabia’s Olayan Group has scrapped plans for a £2.9 billion bid for a UK shopping center owner.
Shares in mall owner Intu collapsed on Thursday when the would be suitors, that also included Peel Group and Canadian property firm Brookfield, said that “macroeconomic uncertainty and potential market volatility” meant that they could not submit an offer.
Intu shares dropped 35 percent to trade at almost half the 210.4 pence level of the planned bid. It is the second major blow faced by the company after rival Hammerson also dropped a £3.4 billion deal to acquire the company in April.
“Given the uncertainty around current macroeconomic conditions and the potential near-term volatility across markets, the consortium is not able to proceed with an offer within a timeframe which is manageable within the confines of the code timetable,” the consortium said in a statement.
While the consortium did not elaborate on the specific uncertainty that dissuaded its members to pursue the deal, it comes at a time of immense political and economic upheaval in Britain driven by uncertainty surrounding the country’s planned departure from the EU next March.
At the same time, big high street retailers are being forced under as more people shop online, which is having a knock-on effect among mall owners dealing with vacant units and downward pressure on rents.
PwC estimates that some 14 shops are closing every day in the UK.
Mike Ashley, the Sports Direct tycoon who recently took over House of Fraser, revealed he planned to shut four Fraser department stores in Intu shopping centers.
David Fischel, Intu’s chief executive, said that Brexit worries had weighed on the deal in an interview with Reuters.
“The escalation in the news around Brexit and all the potential ramifications has obviously ramped up a lot in the last couple of weeks and has made it a very hard climate to make a big investment decision,” he said.
The UK government was forced to admit on Wednesday that Britain would be economically worse off in any scenario outside the EU.
Earlier the Bank of England warned that in its worse case scenario of a “disorderly” exit, the pound could fall by 25 percent, inflation would spike to 6.5 percent and house prices would tumble by 30 percent.
Peel and Olayan hold about 29.9 percent of the share capital of Intu while Brookfield has no interests in the shopping center owner.
Saudi Arabia's Olayan consortium withdraws from UK shopping mall owner bid
Saudi Arabia's Olayan consortium withdraws from UK shopping mall owner bid
- Brexit creates business uncertainty in retail sector
- Intu shares tank after deal abandoned
Saudi Arabia’s foreign reserves rise to a 6-year high of $475bn
RIYADH: Saudi Arabia’s foreign reserves climbed 3 percent month on month in January to SR1.78 trillion, up SR58.7 billion ($15.6 billion) from December and marking a six-year high.
On an annual basis, the Saudi Central Bank’s net foreign assets rose by 10 percent, equivalent to SR155.8 billion, according to data from the Saudi Central Bank, Argaam reported.
The reserve assets, a crucial indicator of economic stability and external financial strength, comprise several key components.
According to the central bank, also known as SAMA, the Kingdom’s reserves include foreign securities, foreign currency, and bank deposits, as well as its reserve position at the International Monetary Fund, Special Drawing Rights, and monetary gold.
The rise in reserves underscores the strength and liquidity of the Kingdom’s financial position and aligns with Saudi Arabia’s goal of strengthening its financial safety net as it advances economic diversification under Vision 2030.
The value of foreign currency reserves, which represent approximately 95 percent of the total holdings, increased by about 10 percent during January 2026 compared to the same month in 2025, reaching SR1.68 trillion.
The value of the reserve at the IMF increased by 9 percent to reach SR13.1 billion.
Meanwhile, SDRs rose by 5 percent during the period to reach SR80.5 billion.
The Kingdom’s gold reserves remained stable at SR1.62 billion, the same level it has maintained since January 2008.
Saudi Arabia’s foreign reserve assets saw a monthly rise of 5 percent in November, climbing to SR1.74 trillion, according to the Kingdom’s central bank.
Overall, the continued advancement in reserve assets highlights the strength of Saudi Arabia’s fiscal and monetary buffers. These resources support the national currency, help maintain financial system stability, and enhance the country’s ability to navigate global economic volatility.
The sustained accumulation of foreign reserves is a critical pillar of the Kingdom’s economic stability. It directly reinforces investor confidence in the riyal’s peg to the US dollar, a foundational monetary policy, by providing SAMA with ample resources to defend the currency if needed.
Furthermore, this financial buffer enhances the nation’s sovereign credit profile, lowers national borrowing costs, and provides essential fiscal space to navigate global economic volatility while continuing to fund its ambitious Vision 2030 transformation agenda.
