United International Transportation Co. to Acquire Majority Stake in Overseas Development
In a bold move, Saudi car rental firm United International Transportation Co. is on the brink of acquiring a 70 percent stake in the UAE’s prestigious freight forwarder Overseas Development. This recent deal is making waves in the transportation industry.
Financial Evaluation and Purchase Amount
The company, also famously known as Budget Saudi Arabia, revealed in a statement on Tadawul that the purchase amount for the majority stake was determined through a meticulous financial evaluation. The final figure? A whopping 13.34 million dirhams, which translates to $3.63 million.
Expansion Plans in the Middle East
This new sale and purchase agreement is the result of Budget Saudi Arabia’s strategic decision announced in March. The company is set to acquire 70 percent of Overseas Development LLC’s shares in its subsidiaries located in Saudi Arabia, UAE, and Kuwait. This move was initially laid out in a memorandum of understanding signed earlier.
Competition Watchdog Approval
In a bid to solidify its position in the market, Budget Saudi Arabia recently received approval from the Kingdom’s competition watchdog to acquire Al-Jazira Equipment Co. The General Authority for Competition issued a no-objection notice regarding the company’s complete purchase of the operational lease and car maintenance company, also known as Auto World, as per a Saudi Stock Exchange statement.