MEGAPROJECTS-

The Kingdom launched a tender for the lead design consultancy services for its USD7bn Riyadh-Jeddah land bridge megaproject, Meed reports. The megaproject — which is set to develop over 1.5k km of new tracks across the Kingdom — is part of a broader scope to construct six new railway lines, including a 950-km rail line linking Riyadh and Jeddah and another 115-km route connecting Dammam and Jubail.

The tracks will bridge together seven logistics centers in the Kingdom, linking Jubail Industrial City, Dammam Port, Riyadh Dry Port, King Khalid Airport, Jeddah Dry Port, King Abdullah Port, and Yanbu Industrial City.

REFRESHER- The project is set to connect the Kingdom’s Red Sea coast to the coast of the Arab Gulf. The Saudi Railway Company (SAR) awarded a consortium in 2023 that includes US-based construction management firm Hill International, Italian consulting firm Italferr, and Spanish engineering firm Sener the contract to manage the construction of the project. SAR r eceived bids for the contract in October 2022.

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M&A WATCH-

Mepco sets out to fully take over Al Medan Project Company: The Middle East PaperCompany (Mepco) inked a share and purchase agreement (SPA) to buy up 100% of Al Medan Project Company for Corrugated Carton (MPFC) in a cash-plus-equity transaction, it said in a filing to Tadawul. The move is pending regulatory approval, with the SPA set to expire within nine months. MPFC produces and supplies corrugated carton and packaging materials across the country.

Transaction mechanism: The acquisition will see Mepco issue an undisclosed amount of new shares to the sellers with a lock-up period of 12 months, in addition to a SAR 91 mn cash-consideration.

ADVISORS- Mepco tapped SNB Capital as its financial advisor on the transaction, with Baker McKenzie providing counsel.

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