Budget Saudi subsidiary snags stake in Overseas Development UAE unit

Budget Saudi subsidiary acquires majority stake in Overseas Development in UAE: AljozoorAlrasekhaTrucking (Rahaal) — a wholly-owned subsidiary of automobiles rental firm Budget Saudi — has signed a sale and purchase agreement to acquire a 70% stake in UAE freight forwarder Overseas Development ’s subsidiary in the UAE, the parent company said in a disclosure to Tadawul. The transaction was valued at a price of AED 13.3 mn (c. SAR 13.6 mn).

Bringing a months-old MoU to fruition: Rahaal had penned a six-months MoU with Overseas Development back in July 2022 for the potential acquisition of 70% of the latter’s subsidiaries in Saudi, UAE, and Kuwait — an agreement that was then renewed for another six months in January 2023. The parties later signed a binding MoU for the acquisitions in March 2023.

What we still don’t know: Rahaal’s acquisition of Overseas Development’s unit in the UAE is the second to materialize through a sales and purchase agreement after the company finalized procedures in November to acquire a 70% stake in Overseas Development’s subsidiary in Saudi. It remains unclear whether a sealed acquisition of the Overseas Development subsidiary in Kuwait by Rahaal would follow.

About the company: Founded in 1976 in Jeddah, Overseas Development provides industry-specific logistics, shipping and freight services across the Kingdom, Kuwait, the UAE, and Lebanon. The company also offers customs brokerage and ins. services for its sea, land and air shipments, according to its official website.