United International Transportation Co. (Budget Saudi) on Monday signed via its subsidiary Rahal Ltd., an exclusive franchising agreement with Barloworld Logistics, the company said in a statement to Tadawul.
Under the deal, Rahal will be the sole agent for Barloworld logistics services across the kingdom.
The franchising agreement will be effective from June 1, 2016 to May 31, 2021.
The car rental firm added that it expects the financial impact from the deal to show on Rahal’s annual financial statements for 2017.
On May 1, Barloworld asked to extend a letter of intent signed last November with Budget Saudi till May 31, 2016.
Barloworld is one of the world’s largest logistics services providers, with a large number of subsidiaries in Europe, the United States (US), East Asia and the Middle East.