Knauf to Acquire 63.2% Stake in Saudi’s United Mining Industries
Germany’s Knauf received approval to acquire a controlling stake in Saudi gypsum manufacturer United Mining Industries.
German building materials group Knauf International GmbH has received regulatory clearance to acquire a 63.2% stake in Saudi Arabia’s United Mining Industries Company for SR504.49 million ($134.5 million).
The approval was issued by the General Authority for Competition, allowing the German manufacturer to proceed with the transaction that will give it a controlling position in the Jeddah-headquartered company.
United Mining Industries Company manufactures gypsum and other construction materials and supplies markets across the Middle East beyond Saudi Arabia. Following completion of the initial acquisition, Knauf International GmbH intends to acquire the remaining stake in the company.
The transaction is being advised by Lazard, with AS&H Clifford Chance acting as legal counsel.
Knauf Group, a family-owned company, is among the world’s largest producers of gypsum-based construction materials, insulation products and ceiling systems. The group operates more than 300 production sites and sales organisations across over 90 countries.
The acquisition marks the company’s strategic entry into the Saudi market and comes as the Kingdom advances industrial localisation goals under Saudi Vision 2030.
