ISLAMABAD: The Competition Commission of Pakistan (CCP) this week approved three mergers concerning a leading Saudi company that has a significant presence in Pakistan’s steel market, the regulatory body said.
Based in the kingdom, M/s/ Saudi Iron and Steel Company (Hadeed) produces a range of steel products and deals in spot sales in Pakistan’s steel market. Hadeed also exports to the South Asian country through international traders.
The CCP said in its press release on Saturday that the Public Investment Fund (PIF), Saudi Arabia’s sovereign wealth fund, sent a pre-merger application to CCP to acquire 100 percent shareholding of Hadeed from M/s. Saudi Basic Industries Corporation (“SABIC”).
“PIF has entered into a share purchase agreement with SABIC, under which SABIC agrees to sell its entire share capital of Hadeed to PIF,” the CCP said.
The second merger involved Hadeed acquiring 100 percent shareholding of Al Rajhi Steel Industries Company from M/s. Mohammad Bin Abdulaziz Al Rajhi & Sons Investment.
Al Rajhi Steel, established in 1978, is a subsidiary of Al Rajhi Invest and is known for its steel manufacturing capabilities in Saudi Arabia. This involved a share exchange agreement between Hadeed and Al Rajhi Invest.
In the third stage, the CCP said PIF intends to dispose off its 44.5 percent shareholding in Hadeed to M/s. Mohammad Bin Abdulaziz Al Rajhi & Sons Investment, the CCP. It added that the move was intended to share control over Hadeed and Al Rajhi Steel to improve their respective production capabilities and increase their operational efficiency.
“These transactions, as per the information available, are not anticipated to raise any competition concerns in the relevant market,” the CCP said.
It said Pakistan’s steel sector is “one of the most important industries in the country” and with investments, can raise the country’s GDP to bring benefits to both the economy and investors.
