Saudi-based Batic Investment and Logistics Company has announced that its wholly-owned unit Saudi Transport and Investment Company (Mubarrad) had reached an agreement to acquire 90 truck heads of German vehicle giant MAN from Haji Husein Alireza & Co. Ltd., as part of efforts to modernise its fleet.

The contract covers the supply of 90 MAN 20-tonne truck heads (2026 model) for delivery in Riyadh, said Batic in its filing to the Saudi bourse Tadawul.

The deal is valued at about 10% of the company’s net assets and will be financed through existing banking facilities and operating cash flows.

The trucks will be delivered within the Kingdom and are covered by a two-year warranty, including one year with unlimited mileage, the company said. 

This contract is a pivotal component of Mubarrad’s strategic mandate to modernise its operational fleet and optimise asset efficiency. 

According to Batic, the acquisition supports Mubarrad’s strategy to upgrade its transport fleet, improve efficiency and expand capacity to meet rising demand in land transport, including pharmaceuticals, food and general cargo.

The company expects the move to help reduce operating costs over the medium to long term and support profitability, while strengthening its position in Saudi Arabia’s growing logistics sector.

Such initiatives are designed to drive down operational expenditures, augment profit margins and sharpen the company’s competitive edge, said the statement. 

Furthermore, this acquisition is strategically synchronised with the rapid expansion of the kingdom’s logistics sector and the evolving dynamics of regional supply chains. 

It reinforces the company’s capacity to capitalise on burgeoning growth opportunities, directly contributing to the objectives of Saudi Vision 2030 in establishing the Kingdom as a preeminent global logistics hub, it added.-TradeArabia News Service