Arabian Cement, AlSafwa extend exclusivity deal for potential merger

Arabian Cement Co. has extended its exclusivity agreement with Al Safwa Cement Co. related to their potential merger until Dec. 7, 2017.

During this period, both companies will refrain from discussing purchase terms with any other party for a potential merger or acquisition, Arabian Cement said in a bourse statement on Thursday.  

The extension comes as Arabian Cement is still gathering some data required by AlSafwa Cement to present an initial non-binding offer, the Saudi-listed cement producer added.

No agreements were signed related to a merger; therefore no specific conditions or timeframe have been set.

The deal has no related parties except for Arabian Cement board member Mohammed Aba-Khail, who represents the Public Pension Agency, which has a 25 percent stake in AlSafwa Cement. Accordingly, Aba-Khail will not vote on the deal.

Arabian Cement will only announce further updates if an initial non-binding agreement is signed, the statement added.

The cement company last month started preliminary merger talks with AlSafwa Cement Co. and signed an exclusivity agreement in this regard.