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BinDawood has received notice that the General Authority for Competition has no objection to the Tadawul-listed supermarket groups’ full acquisition of Jumeirah Trading in a transaction valued at SAR 186.5 mn, it said in a disclosure to Tadawul yesterday. The acquisition comes as BinDawood looks to expand its distribution reach, reduce supply chain risk, and improve profit margins through vertical integration, it added. Bindawood’s board approved the takeover in May.
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What’s Jumeirah? It is engaged in the wholesale, retail and distribution of food, household products, toys, and luggage across Saudi. Its net income nearly doubled y-o-y in 2023 to report SAR 22.2 mn, while its revenues were up 28.7% y-o-y last year to SAR 142.9 mn.
Share price: BinDawood’s shares were down 1.2% to SAR 7.3 a piece at yesterday’s market close.
MAYAR HOLDING TO BUY TWO ELEVATOR COMPANIES
Mayar Holding unit eyes two elevator companies in one go: Elevator Solutions Investment, a subsidiary of Nomu-listed Mayar Holding Company, has signed a contract to fully acquire Saudi Installation Operation and Maintenance Contracting Company (ITM) and the Smart Elevators Company in one transaction, Mayar Holding said in a disclosure to Tadawul. The parties signed a non-binding MoU on the acquisition last month.
Ironing out the details: The acquisition sees the sellers of ITM and Smart Elevators receiving SAR 40 mn and a 28% stake in Mayar’s Elevator Solutions Investment, according to the disclosure. The transaction will be funded from Elevator Solutions’ own resources with the amount paid over one year as agreed between the parties. The completion of the acquisition remains contingent on a “number of terms and conditions…including but limited to terms and procedures of a regulatory and commercial nature.”
The rationale: The acquisition comes under Elevator Solutions’ plan to increase its market share in the local elevator market and offer a broader range of products and services to boost its competitiveness, according to the disclosure.
Market reax: Mayar’s shares were up 3.0% to SAR 3.4 per share at yesterday’s market close.
