Qassim Cement Co. (QCC) expects the impact of the acquisition of Hail Cement Co. (HCC) to show in the third quarter of 2024. The acquisition of HCC was part of the company’s expansion strategy to maximize shareholder equity and boost the company’s production capacities, CEO Omar Alomar told CNBC Arabia.
HCC has significant privileges backed by its geographic reach, which helps increase access to new customers by expanding the company’s geographic scope after the acquisition. “We will work on ramping up the production capacity of both companies after the acquisition,” Alomar said.
The two companies enjoy a strong financial position, with no liabilities.
HCC’s assets were valued by international firms, based on the stock price and cash flows, Alomar added, noting that HCC’s assets will be integrated into QCC after the acquisition.
Shareholders of QCC and HCC approved the planned takeover of the latter during the extraordinary general meetings (EGM) held on June 10, Argaam reported.
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