Saudi contracting firms eye $1bn merger
Riyadh, December 15, 2009
Eleven contracting firms operating in energy and other sectors are to merge in three years time to form a new entity worth up to 4 billion Saudi riyals ($1.07 billion), an executive said.
Saudi Consolidated Contracting Company will be formed from non-listed companies operating in energy, real estate, construction and maintenance work, Jassim Al-Rumaihi, its chief executive told Reuters.
Consultants Ernst & Young are conducting due diligence and working on a financial plan for the firms, he said, adding the final number of contracting firms to be merged would be agreed by July 2010.
Mergers in Saudi Arabia, the biggest Arab economy and top OPEC oil exporter, are rare because many companies are dominated by families who tend to dislike giving up control. - Reuters