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Fawaz Danish, President and Group CEO of Budget Saudi
United International Transportation Co.’s (Budget Saudi) CEO Fawaz Danish said that the rapid growth in logistics services through ports, airports, shipping and other businesses in Saudi Arabia makes the proposed new acquisition a “step in the right direction and at the right time”.
On Sunday, the Saudi-listed company announced that its wholly-owned subsidiary, Aljozoor Alrasekha Trucking Co. (Rahaal), signed a memorandum of understanding (MoU) for the possible acquisition of companies affiliated with Overseas Development Holding Co. EC in Saudi Arabia, UAE and Kuwait.
The bulk of the funds invested in the acquisition will be used to expand and increase the scope of the company's businesses, Danish told Argaam in an exclusive.
Overseas Development’s business is 80% concentrated in the Kingdom, 18% in the UAE and the remaining in Kuwait, he said.
The transaction's financial impact is likely to be positive, particularly with increased demand and the inability of companies operating in the Kingdom to fill the gap between demand and supply for these services.
“We hope to find solutions to reduce the problems of supply chains in Saudi Arabia and the Gulf countries,’ he added.
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