In a strategic move aimed at strengthening its position in the Saudi market and integrating its operations, Taqat Mineral Energy Trading Company announced the signing of a 100% acquisition agreement for Bayan Transport Trading Company. The agreement was signed last Thursday, according to an official statement published on the Saudi Stock Exchange (Tadawul) website.
Details of the deal and financial obligations
The company clarified that the total value of the transaction amounted to SAR 16.5 million, which will be self-financed from Taqat's available cash. The full amount will be paid within 15 days of the signing date. The agreement includes the transfer of ownership of the commercial registration, all assets, licenses, premises, and the Bayan Transport Company's trademark to Taqat. The transaction also includes the acquiring company assuming the outstanding loan debt with Bank Albilad and the outstanding debt related to the truck leasing agreement with Banque Saudi Fransi.
Strategic integration between mining and logistics
This acquisition comes at a crucial time as the mining and logistics sector in Saudi Arabia is experiencing rapid growth in line with the Kingdom’s Vision 2030. Given that Bayan Transport Company’s business is focused on transporting and reselling recyclable metals, this deal represents a model of vertical business integration; as Taqat will be able to control its supply chain, from trading in metals to transportation and logistics operations, reducing operating costs and increasing performance efficiency.
Financial impact and future prospects
The mining company expects this acquisition to positively impact its financial statements, as the addition of Bayan Transport's assets will increase the company's total assets, in addition to the anticipated revenue growth resulting from the expansion of its business base. Despite the increased financial obligations stemming from debt servicing, the company is banking on the long-term profitability generated by its expansion in the transportation and logistics sector, which is vital to the mining and industrial sectors.
This step reflects the trend of Saudi companies towards building more robust and diversified economic entities, capable of competing and meeting the growing demand in the local market, especially in light of the boom in infrastructure and industrial projects in the Kingdom.
