Court orders Molan to pay Yara International SAR 17.9M

Logo of Molan Steel Co. 

Molan Steel Co. said that a final court ruling was issued in the legal action filed by Yara International Ltd, requiring Molan to pay the claimant an amount of SAR 17.9 million, and rejected the other claims.

In a statement to Tadawul, the company noted that there are no changes to costs, as the amount awarded in the judgment was already recorded in the company’s financial statements for 2024 and H1 2025.

It added that the claim included an additional amount of SAR 2 million representing attorney fees, which was dismissed in the final judgment.

The reasoning of the judgment included the dismissal of the claimant’s request for compensation of attorney fees, as the defendant’s refusal to pay the purchase price was based on the discovery of a fundamental error affecting consent.

The court found the presented defenses sufficient to establish the defendant’s belief in the legitimacy of its position. It was therefore concluded to reject obligating Molan Steel to compensate for litigation-related damages.

According to data available on Argaam, Molan announced in December 2024 that it had signed an agreement with Yara International to acquire 100% of Mayar International Industry for SAR 34.88 million. In July, Molan received a notice of a commercial lawsuit filed by Yara International before the Commercial Court in Riyadh demanding SAR 17.88 million in outstanding dues from the sale of the subsidiary, as well as SAR 2 million in compensation for litigation-related damages.

In September, the company announced that a preliminary court ruling was issued in that case, requiring Molan to pay SAR 17.88 million while rejecting all other claims.