RIYADH: Saudi Arabian Mining Company (Ma’aden) has announced that its wholly-owned subsidiary, Ma’aden Marketing and Distribution Company has signed a binding agreement to acquire 85% of the Meridian Group (Meridian), based on an enterprise value of USD 140 million equivalent to SAR 525 million.[the_ad id=”31605″]The remaining 15% of Meridian is expected to be acquired over approximately the next four years.

Meridian is a leading agricultural inputs business operating in Mauritius and Southeast Africa. Private equity investors (managed by Phatisa) and minority shareholders from Meridian’s executive management currently own Meridian. Completion of the transaction to acquire 85% from Meridian Group is subject to regulatory approval and other customary conditions and is expected in the third quarter of 2019.

Meridian distributes close to half a million tonnes of fertilizer across Malawi, Mozambique, Zimbabwe and Zambia.

The acquisition furthers Ma’aden’s 2025 strategy, which includes expanding operations and sales outside the Kingdom.

The transaction will be fully financed from Ma’aden’s cash on hand. The financial impact of the acquisition is expected to be reflected in 2019 third quarter financial results.