Arabian Cement Co. (Arabian Cement) has started preliminary merger talks with AlSafwa Cement Co. on Wednesday.
They signed a one-month exclusivity agreement stopping them from discussing the merger with any other party, Arabian Cement said in a statement on Tadawul.
No agreements were signed related to a merger, therefore no specified conditions or timeframes were set.
The deal has no related parties except for Arabian Cement board member Mohammed Aba-Khail who is appointed by the Public Pension Agency, which has a 25 percent stake in AlSafwa Cement, and accordingly he will not vote on this deal.
Arabian Cement will only announce further updates if an initial non-binding agreement was signed, the statement added.