Linklaters advises Saudi Basic Industries Corporation (SABIC) on the sale of Saudi Iron & Steel Company (Hadeed) to the Public Investment Fund (PIF) for US$3.3bn

Linklaters advised Saudi Basic Industries Corporation (SABIC) on the sale of its wholly-owned subsidiary, Saudi Iron & Steel Company (Hadeed), to the Public Investment Fund of Saudi Arabia (PIF) for an enterprise value of SAR 12.5bn (US$3.33bn).

At closing of the transaction, Hadeed will also acquire a 100% shareholding in AlRajhi Steel Industries Company (Rajhi Steel) from Mohammed Abdulaziz AlRajhi & Sons Investment Company, in exchange for newly issued shares in Hadeed.

Hadeed is an integrated steel manufacturer and one of the largest steel producers in the Middle East. This transaction will bring together the PIF’s financial capabilities and industry experience with the leading technical and commercial expertise of Hadeed and Rajhi Steel, while allowing SABIC to focus on its strategy to become the preferred world leader in chemicals.

The Linklaters team was led by Waleed Rasromani, the firm’s Saudi Arabia National Managing Partner, with support from corporate managing associates Patrick Sutton-Mattocks and Stu Peters.

Waleed Rasromani commented:

“Linklaters has established a long-standing reputation in supporting clients on their most complex and significant matters in Saudi Arabia. We are honoured to be trusted by SABIC on this strategic transaction and our team looks forward to continuing to support strategic development in the Kingdom.”