Saudi Vitrified Clay Pipe Co. (SVCP), a producer of clay pipes, on Sunday signed an agreement to buy Arabian Company for Water Pipe (AcwaPipe) for a total value of SAR 160 million, after completing the due diligence process, the company said in a statement to the Saudi bourse, Tadawul.
The deal will be financed through a bank loan of SAR 60 million, and SAR 100 million worth of letters of credit. The ownership will be transferred via the notary public within 120 days of the agreement date.
Last August, SVCP signed a memorandum of understanding (MoU) to acquire AcwaPipe in a stock-for-cash deal, according to the data compiled by Argaam.
In December, SVCP obtained an approval from Saudi Arabia’s Council of Competition (COC) to finalize the acquisition deal.
Riyadh-based SVCP supplies piping infrastructure for residential and industrial construction. AcwaPipe is a Saudi-based manufacturer of water, sewage, and industrial pipes.
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