#Saudi Arabia #Riyadh #Vision 2030 #Knauf Group #United Mining

Knauf Reinforces Commitment to Saudi Arabia

In a significant move for the building materials industry, Knauf, a leading international manufacturer, has unveiled its plans to acquire a dominant stake in the United Mining Industries Company (UMI), a prominent player in Saudi Arabia's construction sector. This acquisition is poised to elevate Knauf's influence in the region and aligns perfectly with Saudi Arabia's Vision 2030 initiatives aimed at diversifying the economy and fostering local industrial growth.

Overview of the Acquisition

The proposed deal will see Knauf secure a 63.2% majority stake in UMI. This initial investment is only the beginning, as Knauf also intends to make a bid to acquire the remaining shares, aiming for 100% ownership after fulfilling necessary regulatory requirements. The move underscores Knauf's strategic focus on consolidating its operations in high-potential markets like Saudi Arabia, which is viewed as a critical component of its regional growth strategy.

Laying the groundwork for this ambitious venture, Knauf has cultivated a strong foothold in the Middle East over the past three decades. This acquisition not only reflects the firm’s commitment to the expanding Saudi market but is also integral to its broader vision of contributing to the Kingdom's industrial diversification efforts, enhancing its competitiveness on the global stage.

Supporting Saudi Arabia's Vision 2030

Paul Button, General Manager of Knauf GCC, emphasized the strategic nature of this acquisition, pointing out that “UMI has a strong industrial base and market presence in Saudi Arabia.” Merging this foundation with Knauf’s extensive experience in manufacturing, innovation, and technical expertise will fortify the construction sector within the Kingdom.

As part of Saudi Arabia's broader Vision 2030 plan, which focuses on sustainable growth, localization of industries, and infrastructure development, Knauf's investment promises to bolster these objectives significantly. Eng. Raed Al Mudaiheem, Chairman of UMI, reiterated this sentiment, highlighting that the collaboration with a global industrial leader like Knauf not only confirms the attractiveness of the Saudi market but also reinforces the government's efforts to invite foreign investment into the local economy.

Future Steps and Expectations

Despite the strong positive implications of the acquisition, it is essential to remember that the deal is contingent upon meeting regulatory conditions and receiving necessary approvals. If all goes as planned, Knauf’s local leadership will oversee UMI’s integration into its operations, ensuring continuity while aiming for long-term value for all stakeholders involved, including employees, customers, and business partners.

Financial advisement for this transaction comes via Lazard, while ASH Clifford Chance is providing the legal support necessary for successful negotiations.

Conclusion

As Knauf takes this monumental step to expand its footprint in Saudi Arabia, the company is set to not only elevate the building materials industry but also support sustainable development goals aimed at creating a resilient and competitive construction sector. With their unwavering commitment and substantial investment, Knauf is poised to play a crucial role in realizing the aspirations of Saudi Arabia's Vision 2030, thereby reaffirming its status as a global leader in the construction materials market.

For more information, please visit Knauf's official website.