Molan Steel signs settlement agreement with Yara International

Logo of  Molan Steel Co.

Molan Steel Co. signed on March 29 a final and comprehensive settlement agreement with Yara International Ltd.

This resulted in the full resolution of the dispute between the two parties related to the subsidiary commercial registration in the name of Mayar International for Industry. This is in addition to the settlement of all related claims and procedures, while maintaining the agreement in force and agreeing on a new payment schedule for the remaining amount.

The agreement entailed the withdrawal of the request to invalidate the contract, thereby maintaining its validity and enforceability. The two parties also agreed to complete the execution of the contract and settle the remaining balance of its value according to a new payment schedule concluding on Feb. 28, 2027.

In addition, they agreed on the immediate lifting of existing enforcement measures and the release of restrictions on the company’s bank accounts. This is along with the termination of the pending lawsuit related to the request for contract invalidation, and the settlement of all claims and proceedings between the parties.

This settlement reflects the company’s approach to managing disputes efficiently, as well as its commitment to maximizing the return on administrative resources by redirecting them toward strategic growth initiatives.

The management carefully evaluated the trajectory of the dispute and concluded that the terms of the achieved settlement offer greater value than continuing with judicial proceedings. This comes particularly in light of the direct benefits secured under the agreement.

These benefits include the lifting of existing enforcement measures, the release of restrictions on bank accounts, and the rescheduling of financial obligations. This is in addition to enabling the company to pursue the collection of its contractual receivables—all of which serve to bolster its financial and operational stability and allow the management team to dedicate its full attention to executing growth strategies.

Molan announced in December 2024 that it had signed an agreement with Yara International to acquire 100% of Mayar International for SAR 34.88 million, according to Argaam data.