City Cement ends Umm Al-Qura Cement buyout deal without agreement

City Cement Co. said the deadline to meet the conditions of the implementation agreement with Umm Al-Qura Cement Co. expired on Oct. 24, without the required conditions being met or the necessary procedures completed to finalize the deal.

The implementation agreement was also not renewed, the company said in a statement to Tadawul.

City Cement is reviewing all options to safeguard shareholders’ interests, including the potential resubmission of an acquisition offer for Umm Al-Qura Cement shares, if conditions are favorable and in the company’s best interest.

The statement emphasized that the proposal does not constitute any obligation or commitment to enter into a new agreement at this time.

Any material developments will be disclosed in due course.

Meanwhile, Umm Al-Qura Cement announced the termination of its implementation agreement with City Cement, without extension from either party, due to the non-fulfillment of the conditions stipulated in the agreement and the parties’ failure to agree to waive any of them within one year of signing.

In a separate statement to Tadawul, the company said that the expiration of the agreement does not result in any additional financial or regulatory obligations.

The cement producer will continue focusing on its operational and investment plans in line with its approved strategy and will announce any relevant future developments as they arise, the statement said.

According to data available with Argaam, City Cement announced in February its intention to submit an offer to acquire all shares of Umm Al-Qura Cement through a securities exchange offer.

However, the Capital Market Authority (CMA) rejected the publication of City Cement’s offer document to Umm Al-Qura Cement shareholders in July, citing regulatory and governance violations that required the fulfillment of certain legal requirements.