SynopsisSaudi Arabia's Public Investment Fund is set to acquire Saudi Iron & Steel Company (Hadeed) from the Saudi Basic Industries Corporation (in a $3.3 billion deal. Hadeed will also take full ownership of AlRajhi Steel Industries Company (Rajhi Steel) from Rajhi Invest, strengthening Saudi Arabia's steel industry. These transactions align with PIF's vision to boost industrial development, meet local steel demand, and support Saudi Vision 2030's growth in sectors like construction, automotive, and renewables.ArticleIn a significant move, Saudi Arabia's Public Investment Fund has unveiled a $3.3 billion deal to acquire a complete 100% shareholding in the Saudi Iron & Steel Company (Hadeed) from the Saudi Basic Industries Corporation.Under a cross-conditional share exchange agreement, Hadeed will reciprocate by acquiring a full 100% shareholding in AlRajhi Steel Industries Company (Rajhi Steel) from Mohammed Abdulaziz AlRajhi & Sons Investment Company (Rajhi Invest). This exchange will involve the issuance of new shares in Hadeed.However, the finalization of these agreements hinges on customary approvals from relevant authorities and meeting specific transaction agreement conditions. PIF and Rajhi Invest's ultimate shareholding in Hadeed will be settled based on the closing mechanics defined in the agreements.These transactions align with PIF's broader mission to accelerate Saudi Arabia's industrial development and address the surging local demand for steel, thereby enhancing the nation's steel production capabilities. Furthermore, they are set to foster growth in key downstream sectors, including local construction, automotive, utilities, renewables, transport, and logistics, all in alignment with Saudi Vision 2030.The collaboration between Hadeed and Rajhi Steel will merge their world-class steel plants and extensive leadership and expertise within the steel industry. This consolidation aims to enhance production capabilities and operational efficiency for both entities.ConclusionThese transactions signal a transformative shift in Saudi Arabia's steel industry, with PIF, SABIC, and Rajhi Invest joining forces to create a formidable steel powerhouse.