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said Majed Al Osailan, Vice Chairman of the National Cement Committee (NCC) at the Federation of Saudi Chambers
Saudi Arabia has a large number of cement companies, which weighs on their market shares, said Majed Al Osailan, Vice Chairman of the National Cement Committee (NCC) at the Federation of Saudi Chambers.
The sector still has varying market shares, which leads to tensions in the market due to the significance of the commodity, Al Ekhbariya TV reported, citing Al Osailan.
For More Mergers and Acquisitions
He added that cement companies are impacted by construction projects, noting that while demand slowed, things changed amid renewed spending and project rescheduling as they approach execution stages.
Most development projects made significant progress in infrastructure, and companies are now able to meet cement demand in the market, Al Osailan said.
He added that mergers among cement companies strategically strengthen the sector, creating economic entities capable of keeping pace with demand in Saudi Arabia.
According to Argaam's data, the local cement sector saw its first merger deal between Qassim Cement Co. and Hail Cement Co. Currently, City Cement Co. and Umm Al-Qura Cement Co. are negotiating a stock swap deal, where the former would acquire all issued shares of the latter.
Saudi Arabia’s cement market started to see improved demand since July and will likely witness robust demand levels from the end of September until February 2025, Badr Johar, Chairman of NCC, told Argaam.
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