Riyadh – Mubasher: Saudi Arabia-based Al Hammadi Company for Development and Investment is said to be planning to appoint Goldman Sachs Group as an advisor for its merger with National Medical Care in the coming period.
National Medical Care is said to be looking to appoint JP Morgan Chase for managing the transaction, informed sources told Bloomberg on Sunday.
In August, discussions began between the two Saudi firms regarding the proposed merger, which if completed would result in a company with $1.9 billion in market value.
“Mergers and acquisitions in Saudi Arabia are set to pick up as slower economic growth encourages more tie-ups between firms, and new takeover rules are poised to make it easier to do deals,” according to the news agency.
Al Hammadi’s stock last fell 2.29%, closing Thursday at SAR 38.60.
In November, Jabal Omar Development Co. said it was in talks over a possible merger with Umm Al Qura Development and that it had hired Goldman Sachs to advise on the deal.
Similarly, Saudi British Bank (SABB), which 40% owned by HSBC Holdings, is reportedly in merger talks with Alawwal Bank.
Both Al Hammadi Company for Development and Investment and National Medical Care Co. are listed on the Saudi Stock Exchange (Tadawul). No official statements regarding the merger have been made.
