Amiantit JV with Hobas wins European Commission approval

The European Commission has approved the acquisition of joint control over Hobas Europe of Austria by Wietersdorfer of Austria and Saudi Arabian Amiantit Co. (Amiantit), that was signed on Feb. 6, Amiantit said in a statement to Tadawul.

Under the agreement, Amiantit’s European pipe manufacturing and sales companies and its Flowtite technology will be merged with WIG, also known as Hobas.

The approval was announced on the website of the European Commission which is entrusted to clear business mergers within its jurisdiction.

Amiantit will communicate the European Commission directly for an official confirmation, the statement said.

Under the JV agreement, closing the deal along with its legal requirements should be completed by Q3 this year.

Amiantit expects a positive impact from this deal on its earnings and equity once finalized; however, no significant cash flow impact is anticipated, the statement said.