Dubai Investments PJSC (DI), a diversified holding company, has signed a Memorandum of Understanding (MoU) to acquire the Riyadh-based Saudi American Glass (SAG) in a move that will make the company a leading player in the Middle East glass industry.
The financial due diligence is expected to be completed in three weeks while other technicalities regarding the acquisition have already been completed.
Announcing this Mr. Khalid Kalban, CEO and Managing Director, Dubai Investments, said: "The acquisition of SAG will position us strategically to take advantage of the huge growth potential the region offers. Our subsidiary and regional leaders in high quality glass products Emirates Glass and SAG will together have a combined coating capacity of 3.5 million meters. This will make us the largest in the entire Middle East."
SAG is currently the only glass coating facility in Saudi Arabia and the only other coater in the Middle East besides Emirates Glass. Thus the coming together of these two entities is expected to bring better synergy to DI.
DI is already in the process of creating a holding company for all its glass units to deal with an entire range of glass products. DI currently has 28 companies in its fold which is expected to go up to 33.
“Our target is to create a one-stop-shop of global standards for all glass requirements in order to meet all glass requirements in the region. The acquisition of SAG is one more step in that direction. SAG and Emirates Glass have already started working together on orders in hand in order to meet the rising market demand.” said Mr. Kalban.
Emirates Glass will continue to invest substantial amount of money to ensure higher level of quality and service required within the industry.