City Cement Company (SASE:3003) entered into a non-binding memorandum of understanding to acquire Umm Al-Qura Cement Company (SASE:3005) on November 3, 2022. The consideration payable by City Cement to Um Al Qura Cement's shareholders will be the issuance of new shares in City Cement in accordance with Article 26 of the Merger and Acquisition Regulations, as the value of the deal and the exchange factor will be determined after completing the necessary studies, including the due diligence. The implementation of the transaction is subject to the City Cement and Um Al-Qura Cement agreeing a final definitive agreement that determines the terms and conditions of the transaction.

The terms and conditions of the final definitive agreement will include obtaining all the required regulatory approvals and the approval of each respective extraordinary general assembly of City Cement and Um Al-Qura Cement on the transaction and its related matters. City Cement will announce all the relevant details at a later stage. The Proposed Transaction is subject to the regulatory approvals, including approvals from the competent authorities and the approval of the extraordinary general assembly of each company.