Southern Province Cement Company has announced that it has entered into a non-binding agreement with a leading Saudi cement group Yanbu to explore a potential merger.

 

The duo had an year ago signed the merger agreement which expired on June 22. Following this, the two have  signed an agreement for extension to the MOU by an additional three months, said Southern Province Cement Company in its filing to Saudi bourse Tadawul. 

 

The duo has until September 22 to reach a decision on the merger.

 

The potential transaction is under consideration and no binding agreement has been reached to date or regarding the structure, stated Southern Province Cement Company. 

 

Even if the duo reach a deal on the merger by September 22, the potential transaction will remain subject to the approvals of the Capital Market Authority and the Saudi Exchange.

 

Also the duo will have to secure the requisite approvals of the shareholders of both companies.-TradeArabia News Service