Knauf Eyes United Mining Industries in Major $78M Saudi Arabia Acquisition
Germany’s Knauf International plans to acquire full ownership of Saudi-based United Mining Industries through a cash offer worth about 293.5 million riyals, roughly 78 million dollars, for the remaining publicly held shares, a move that could ultimately see the company delisted from the Nomu Parallel Market.
The offer follows Knauf’s purchase of a controlling 63.2 percent stake in United Mining Industries in May for 504.5 million riyals. Combined with the new offer, the German firm’s total spend to acquire the entire Saudi company would reach approximately 798 million riyals.
Analyst Abdulaziz Khuraiss described the deal on X as a market first, noting that it involves a foreign strategic investor who, having already bought out the company’s major shareholders, is now moving to acquire the remaining public shares and take the company private entirely.
Knauf has offered 57 riyals per share for the remaining 5.15 million shares in United Mining Industries, valuing the offer at about 293.5 million riyals if all shareholders accept. That price matches what Knauf paid in May to acquire 8.85 million shares from former major shareholders Al Mojel Trading & Contracting Co., Abdul Qadir Al Muhaidib & Sons Co. and Rashid Development Co. Ltd. The offer represents a 26.7 percent premium over the share price before the private transaction was announced, and is roughly 2.7 percent above the closing price of 55.50 riyals recorded on September 24.
According to Khuraiss, this phase completes the acquisition process that began with the purchase of the major shareholders’ stakes, with Knauf now seeking full ownership at the same 57 riyal price, pending regulatory approval and shareholder acceptance. The stock fell 0.9 percent to 55 riyals during mid-session trading on September 27.
United Mining Industries was established in Jeddah in December 2006 as a closed joint-stock company, with current capital of 140 million riyals split across 14 million shares. Its shares listed on the Saudi parallel market in 2023, ahead of Knauf’s majority stake acquisition in May. Knauf International GmbH is a German limited liability company with capital of 62 million euros, roughly 70 million dollars, headquartered in Iphofen, Germany.
The deal’s significance goes beyond acquiring a stake in a listed company. United Mining Industries gives Knauf an established manufacturing base in Saudi Arabia, including production assets, sales channels, an existing brand, and a new gypsum board production line. Knauf sees the acquisition as a chance to apply its manufacturing, research and sales expertise, while creating opportunities to expand production capacity and grow from the Saudi market into the wider region.
The offer acceptance period runs from September 27 to November 4, with share deposits and shareholder payments scheduled for November 18, and completion of the acquisition expected to be announced on November 19.
Financial analyst Assem Mansour expects continued acquisition activity across both the main and parallel markets, with the pace shaped by how quickly legislative and regulatory changes move forward. He said the mining sector is driven by strategic and structural factors that set it apart from areas like banking and energy, describing Knauf’s move as part of a broader trend, and noted that Saudi Arabia’s mining sector is positioned for significant growth, with opportunities estimated in the trillions of dollars that could spur further acquisitions of companies tied to the metals industry.
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