Saudi petrochemicals giant Sabic is to sell its wholly owned steel production subsidiary Hadeed to the PIF sovereign wealth fund in a SR12.5bn ($3.33bn) deal. The transaction is intended to create a ‘National Champion’ in a critically important industry while also providing Sabic with liquidity to invest in its core areas of operation.

PIF is purchasing 100% of Hadeed’s existing shares, while at the same time Hadeed will acquire a 100% shareholding in Rajhi Steel from Rajhi Invest in exchange for newly issued Hadeed shares. PIF and Rajhi Invest’s final shareholding in Hadeed will be finalized closer to the closing date of the transactions, which is expected to be before the end of 1Q 2024. (CONTINUED - 993 WORDS)