Riyadh – Mubasher: Southern Province Cement Company has signed a non-binding memorandum of understanding (MoU) with Yanbu Cement Company to evaluate the feasibility of merging the two companies.
The two companies will commence the process of due diligence, examining operational, technical, financial, legal, and actuarial aspects, according to a bourse filing.
They will also engage in non-binding discussions regarding the terms and conditions details for merger.
The MoU will terminate upon the signing of the merger agreement by both companies, or within 12 months as of the signing date on 23 June 2024.
The proposed merger hinges on completing due diligence, agreeing on final terms, obtaining regulatory approvals, and securing approval from both companies' general assemblies. Signing the MoU does not guarantee the merger will proceed.
It is worth noting that the net profit of Southern Province Cement jumped to SAR 62 million in the first quarter (Q1) of 2024 from SAR 49 million.
