Arabian Pipes inks initial asset purchase deal with Welspun

The Arabian Pipes Company (APC) announced that it signed on April 14, 2012 a memorandum of understanding with Welspun Middle East Pipe and Welspun Middle East Pipe Coating, both Saudi limited liability companies based in Dammam, to buy all or part of their assets— an agreement valid for six months and renewable by mutual consent.

Welspun Middle East’s factory, located at Dammam Second Industrial City, includes three lines for the production of spiral pipes compliant with API standards used in energy pipelines, with a 350 tonnes/year capacity.

Welspun Middle East Pipe Coating factory, located in the same industrial city, includes a developed line for coating pipes with epoxy/polyethylene with annual capacity of 4.6 million m².

The completion of the acquisition is pending a set of conditions including the approval of APC’s shareholders, the owners of the two target companies, the appointment of a financial advisor on each side, and the approval of competent bodies, besides the signing of a final agreement and completion of any ot her procedures required.

The Arabian Pipes company asserts that this announcement is deemed to be future information liable to change any time.  Further developments will be announced in due course.