Tahweel in deal with Tasnee to acquire Saudi industrial group for $186m

04/03/2026 07:17 AST

Saudi Holding Company for Conversion Industries (Tahweel Holding) has entered into a deal with leading petrochemical group Tasnee to acquire 100% of the share capital of its entity - Al Rowad Industrial Transformation Company (Target Company) for SAR700 million ($186.4 million).

The Target Company is one of the leading groups in the plastic conversion industry, comprising several specialised companies that provide innovative solutions for the packaging, agriculture, infrastructure, and industrial sectors.

The group comprises Al Rowad Global Packaging Company (specialises in producing biaxially oriented polypropylene - BOPP - film; Taldeen Plastic Solutions (manufacturer of high-density polyethylene pipes and fittings); Al Rowad National Plastic Company (manufacturer of extruded plastic sheets); Al Rowad International Industrial Films Company (a leading producer of geomembrane liners made from HDPE), and Al Rowad United Marketing (a key entity running an extensive network of retail outlets across the kingdom).

This transaction represents an important step within its strategy to optimise business portfolio, enhance return on capital employed, and maximise long-term shareholder value, said Tasnee in its filing to Saudi bourse tadawul.

It will also contribute to simplifying Tasnee's organisational structure and enhancing overall operational efficiencies.

The proceeds of the asset sale will help boost Tasnee's financial position by redirecting capital allocation and reducing leverage.

Completion of the deal is subject to the satisfaction of several conditions, including obtaining necessary regulatory approvals, such as a no-objection clearance from the General Authority for Competition, along with other customary closing conditions for such agreements, it stated.

The transaction will be settled in cash, and for that the buyer has completed all necessary financing arrangements, it added.

Tasnee has appointed Trussbridge as its financial advisor and Kings & Spalding as its legal advisor, while Tahweel Holding signed up Deloitte as its financial advisor and Dentons as its legal advisor.

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