Riyadh – Mubasher: Saudi Arabian Amiantit Company announced on Sunday the signing of a Memorandum of Understanding (MOU) with the Austrian holding WIG Wietersdorfer Holding GmbH (WIG) to discuss a possible merger of its European pipe manufacturing and sales companies and its flowtite technology with the Hobas AG group of companies.
The European Amiantit business includes pipe manufacturing entities in Germany, Poland and Spain as well as sales companies in France and Norway, according to a bourse statement.
The deal includes the flowtite technology owned by Amiantit and its related research and development facility situated in Norway. The entities included in the Hobas AG at the merger time will encompass manufacturing facilities in Germany, Austria, Poland and Romania and several sales companies in Western and Eastern Europe as well as in the Balkans.
It will also include the Hobas technology, in addition to research and development centres, the company said.
The signature of the joint-venture agreement is expected to take place on 16 January 2017.
