Maaden, Alba extend merger deal till April 2025-end

Logos of Saudi Arabian Mining Co. (Maaden) and Aluminium Bahrain (Alba)

Saudi Arabian Mining Co. (Maaden) announced the extension of the validity period of the non-binding heads of terms with Aluminium Bahrain (Alba), by which the parties need to sign a binding agreement in relation to the proposed transaction from Dec. 31, 2024 to April 30, 2025, according to a statement to Tadawul.

For its part, Alba announced extending the vaility of the non-binding agreement with Maaden, saying that such a period will give both companies more time to conduct due diligence in details and carry out more evaluation for possible strategic and financial benefits resulting from the merger of their businesses.

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In September, Maaden signed a share purchase agreement (SPA) for the acquisition of the entire 20.62% shareholding of SABIC Industrial Investments Co., a wholly owned subsidiary of Saudi Basic Industries Corp. (SABIC), in Alba, according to data available with Argaam.

Pursuant to the SPA, the consideration for the acquisition will consist of an amount paid in cash by Maaden to the seller and will be within a range of BHD 363.08 million (equivalent to about SAR 3.623 billion) to BHD 398.2 million (or about SAR 3.974 billion). The agreed-upon amount will be determined in accordance with the mechanism specified in the SPA.

Maaden’s shareholders approved, earlier this month, the share purchase agreement (SPA) for the acquisition of SABIC's entire stake in Aluminium Bahrain (Alba) with the transaction value ranging from SAR 3.62 billion to SAR 3.97 billion.

Alba’s Chairman Khalid Al Rumaihi said earlier that talks with Maaden regarding asset valuation, financial feasibility, and plans of both companies are currently in early stages, adding that the negotiations are expected to conclude in the first quarter of 2025.