City Cement extends MoU to acquire Umm Al-Qura Cement by 6 months

Logos of City Cement Co. and Umm Al-Qura Cement Co.

City Cement Co. and Umm Al-Qura Cement Co. agreed to extend a non-binding memorandum of understanding (MoU) for a share swap deal by additional six months under the same terms and conditions.

The two companies clarified in separate statements to Tadawul that the extension was made to complete the necessary paperwork to finalize the deal and conduct financial, legal, commercial, and technical assessments. The move aims to ensure the deal closure in accordance with regulatory procedures and the accuracy of the transaction procedures.

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No financial impact is expected from the extension. Any material developments will be duly announced, both companies added.

City Cement added that it appointed the financial advisor, legal advisor, the financial, Zakat, and tax due diligence advisor, as well as the technical and commercial advisor to conduct necessary due diligence, negotiations, sign the agreement, and obtain necessary regulatory approvals.

In November 2022, City Cement signed a non-binding MoU for a period of six months with Umm Al-Qura Cement to initiate talks on a securities swap deal whereby City Cement will fully acquire Umm Al-Qura Cement, Argaam earlier reported.

The two companies agreed in April 2023 to extend the non-binding MoU for additional six months. They also agreed to extend it for another six months in October 2023.