Arabian Cement Company (ACC) [3010.SE] has announced that it had extended its exclusive agreement with Al Safwa Cement Company for 14 more days until 21 Dec 2017. The extension comes as ACC is still in the process of collecting the necessary information from Al Safwa Cement to present a non-binding offer. Although we expect some operational synergy from the proposed merger, the extent of impact on our valuation can only be measured once the company discloses the value of the deal.
(Tadawul, Sameer Kattiparambil)
Arabian Cement Co. (Saudi): SAR33.03 as of 7 Dec. 2017, Rating: Buy, TP: SAR46.50/share, MCap: USD881mn, ARCCO AB/3010.SE