Ranked 65th among the world's largest steel producers in 2022, with a production of 5.51 million tons of crude steel, Saudi Iron & Steel Co. (Hadeed) stands out as one of the giants in the steel sector, boasting a rich history and robust production capacity. As a Saudi Arabia-based company, Hadeed offers a wide range of steel products and plays a significant role in Pakistan through spot sales and exports. The approved restructuring plan will further enhance Hadeed's operational efficiency and market share in Pakistan.
The Public Investment Fund (PIF) of Saudi Arabia has acquired the entire shareholding of Hadeed from Saudi Basic Industries Corporation (SABIC). PIF, a sovereign wealth fund with global investments, sees this acquisition as part of its strategy to consolidate its investments in the steel sector.
Hadeed has also acquired 100% shareholding of Al Rajhi Steel Industries Company from Mohammad Bin Abdulaziz Al Rajhi & Sons Investment. Al Rajhi Steel is a well-known steel manufacturing company in Saudi Arabia.
By selling 44.5% of its shares in Hadeed to Mohammad Bin Abdulaziz Al Rajhi & Sons Investment, PIF aims to establish joint control over Hadeed and Al Rajhi Steel.
This restructuring aims to significantly increase production capacity and operational efficiency by leveraging synergies between the two companies. The CCP foresees no adverse impact on competition from these transactions.
Hadeed's growth initiative is expected to bring about significant changes in Pakistan's steel sector, contributing to its GDP and overall economy, as well as creating new job opportunities.
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