Arabian Cement Company, in a strategic move aimed at restructuring its foreign investments and enhancing the efficiency of its portfolio, announced that its subsidiary, Arabian Cement Bahrain Holding Company, has signed a significant share swap agreement in the Hashemite Kingdom of Jordan. The agreement involves the divestment of its stake in Ready-Mix Concrete and Construction Supplies Company in exchange for increased control in Al-Qatrana Cement Company, in addition to receiving a cash payment.
According to the announced details, an agreement was reached for Ready-Mix Concrete Company and Al-Rawsha Investment and Trading Company to relinquish their shares in Al-Qatrana Cement Company to Arabian Cement Bahrain Holding Company. In return, Arabian Cement Company's subsidiary will relinquish its entire 36.67% investment stake in Ready-Mix Concrete Company to the two Jordanian companies. The deal includes a financial clause obligating the second party to pay 3.233 million Jordanian dinars to Arabian Cement Bahrain Holding Company.
From a financial and ownership perspective, this agreement—which remains subject to regulatory approval in Jordan—will significantly increase Arabian Cement Bahrain Holding Company's stake in Al Qatrana Cement Company to 96.14%, up from 86.74% previously, following the acquisition of the additional 9.4%. Preliminary financial statements reviewed as of September 30, 2025, indicate that the book value of the divested stake in Ready Mix Concrete Company is SAR 41.1 million, while the book value of the acquired stake in Al Qatrana Cement Company is approximately SAR 67.5 million, reflecting a positive asset value difference in favor of Arabian Cement.
The strategic and economic dimensions of the deal
This move comes in line with the trend among major industrial companies in the region to focus on core business activities. By increasing its stake in cement plants (Al-Qatrana) and divesting from ready-mix concrete companies, Arabian Cement is concentrating on the upstream production source, which provides more stable profit margins and market control, rather than spreading its efforts across downstream industries that may face fierce price competition.
Regionally, this acquisition reflects the depth of economic ties between the Kingdom of Saudi Arabia and the Hashemite Kingdom of Jordan, where Saudi investments are a cornerstone of the Jordanian industrial sector. Near-total control (over 96%) of Al-Qatrana Cement Company will grant the parent company significant flexibility in strategic decision-making, production line development, and potentially export expansion to neighboring markets, thus strengthening its position in the Levant region's building materials market.
In conclusion, this transaction is a model of smart restructuring operations that ensures the provision of immediate cash liquidity (3.2 million dinars) while maximizing the value of long-term assets, which will positively reflect on the consolidated financial statements of Arab Cement Company and its shareholders in the near future.
