Saudi group eyes Al Safwa Cement merger

08/10/2017 13:56 AST

Arabian Cement said it has entered into potential merger talks with Al Safwa Cement, a key Saudi-based firm owned by El Khayyat Group, Public Pension Authority (PPA) and General Organisation for Social Insurance (GOSI).

The biggest reason for Arabian Cement to go ahead with the merger move is the locational advantage of the manufacturing facilities of both companies and source of raw materials besides the cost savings in SG&A (selling, general and administrative expenses) and relatively lean inventories, according to Al-Rajhi Capital Research.

Besides the overall weak demand environment, another major factor that will work in Arabian Cement's favour is that both companies have common ownership - One of the owners of Al Safwa, PPA is also a stake holder in Arabian Cement (5.27 per cent).

If the merger goes through, it will result in a combined cement production capacity of 9.2 million tons resulting in a market share of 15 per cent, stated Al Rajhi Capital Research in its report.

Arabian cement has a production capacity of 4.8 million tons while Safwa has 4.4 based on Al Rajhi data, it added.


Trade Arabia

News

Arabian Cement forecasts rise in cement demand in Saudi Arabia

01/04/2025

Arabian Cement Company said in its 2024 annual report that work is underway to increase the production capacity of its fifth production line by the fourth quarter of 2025. The company also said it is

Global Cement News

Further delay to Rabigh plant mill construction

19/10/2017

Commercial start-up of new cement mills at Arabian Cement Co.'s Rabigh plant has been delayed to 3Q18. The mills had been expected to go into operation in 4Q17 but construction work is still ongoing.

Cement World

Arabian Cement postpones Rabigh grinding operation

13/10/2017

Arabian Cement Co expects the commercial operation of the grinding unit at its Rabigh plant, Saudi Arabia, to start in the 3Q18, instead of the earlier-announced 4Q17.

Construction on the

CemNet.com

Most Viewed Companies

Ticker Price Volume

Valuation

ACC Sector Market
P/E
Price/BookValue
Dividend Yield (%)

Momentum

Relative Strength
  • 1-Month
  • 3-Month
  • 1-Year
Volume Change
  • 10D Avg Vs 90D Avg
Price Vs…
  • 52-w high
  • 50-day moving avg.
  • 200-Day Moving Avg

Top Related Companies

Ticker Price Change
MAADEN 64.80 1.95 (3.10%)
SABIC 54.20 -0.75 (-1.37%)
SABICAGRINUTRIENTS 128.40 1.40 (1.10%)
LUBEREF 117.00 -1.00 (-0.85%)
YANSAB 29.50 -0.16 (-0.54%)

Recent News

Knowledge Economic City gets funding for Islamic World District project

19/06/2026

Knowledge Economic City has announced that it has secured a SAR150 million ($40 million) shariah-compliant financing facility from Saudi-based Riyad Bank to fund construction work on the first phase

Trade Arabia

e& plans world's first commercial U6GHz network in UAE

19/06/2026

e& UAE today announced it has awarded a contract to a strategic infrastructure partner to roll out the world's first commercial mobile network using Upper 6GHz (U6GHz) 256TRX Giga-MIMO technology. <

Trade Arabia

GWC launches air-to-land logistics corridor

19/06/2026

Gulf Warehousing Company (GWC) has announced that it has for the first time extended its end-to-end supply chain to include a fully operational air-to-land logistics corridor powered by the TIR syste

Gulf Times

Dubai's Amanat acquires 100% of Cambridge Health in Dh105m deal

19/06/2026

DFM-listed Amanat Holdings PJSC has completed the full acquisition of Cambridge Health Group after buying an additional 10.03 per cent stake for Dh105 million.

The deal gives Amanat 100 per

Gulfnews

Saudi Aramco Weighs Global Oil Storage Facilities to Boost Energy Security

19/06/2026

Saudi Arabia laid out a new strategy in Rome to strengthen global supply chains and build a broader partnership model with Europe, seeking to move beyond current geopolitical pressures and deepen eco

Arab News

logo

Financial Information Co.

Saudi Arabia

GCC Markets

Mutual Funds

News

Investment Tools

Sector News

Screeners

Indices & Commodities

Downloads

Copyright ©2001 - 2025, Financial Information Co. All Rights Reserved.

Terms of Services | Privacy Policy | Advertise with us | Contact Us | Sitemap