Knauf makes the plasterboard and insulation that go inside new buildings. (Knauf)
A German building-materials group is taking full control of a Saudi gypsum board maker and plans to pull it off the stock market, a first for the Kingdom.
Knauf International will hold 99.3% of United Mining Industries once the deal settles on Nov. 18, after investors tendered 36.1% of the company, United Mining said in a filing on Thursday. The offer closed on Wednesday.
Knauf paid 57 Riyal a share, about 288 million Riyal ($77 million) for the shares tendered. It bought its first 63.2% in May for $135 million, putting the full price for the company at about $213 million.
What's new: when Knauf launched the offer in September, the question was whether enough investors would sell. They did. Knauf now plans to buy out the last 0.7% and take United Mining off the market.
A market first: it's the first time a foreign strategic buyer has bought out a Saudi listed company's minority shareholders in order to delist it, an analyst told Asharq Bloomberg in September.
The bigger picture: Saudi Arabia is building stadiums for the 2034 World Cup, venues for Expo 2030 and hundreds of thousands of homes, making it one of the busiest markets for building materials anywhere. Global suppliers want to own their local production rather than rely on imports or partners.
Who they are: Knauf, based in Iphofen, Germany, is one of the world's biggest makers of plasterboard and insulation. Jeddah-based United Mining, listed on the Nomu parallel market since 2023, has its own brand and a new gypsum board production line.
What happens next: Knauf will ask the Capital Market Authority to approve a mandatory offer for the remaining shares, at no less than 57 Riyal each. Delisting then needs the regulator's approval and a shareholder vote.
Why it matters: new listings have slowed sharply this year. Every company taken private makes the Saudi market smaller, just as the regulator tightens the rules for IPOs.
What to watch: the completion announcement, expected by Nov. 19, and the date of the delisting vote.
