PIF completes acquisition of 23.08% stake in Mepco

PIF completes acquisition of 23.08% stake in Mepco

Saudi Arabia's Public Investment Fund (PIF) has announced the completion of a deal to invest in the Middle East Paper Company (Mepco), a leading manufacturer specialised in producing and recycling paper-based products in the Middle East and North Africa.

PIF has acquired a 23.08% stake in Mepco by way of a capital increase and subscription to new shares.

The transaction was completed after securing approvals from relevant authorities as well as Mepco’s shareholders, who approved it at an extraordinary general meeting, a PIF statement said.

Through its investment, PIF will enable Mepco to expand its production, raise its operational efficiency, and support environmental sustainability, through recyclable products – including paper goods – in line with the sustainability goals of both Saudi Arabia and PIF, said the statement.

The investment will further contribute to achieving Mepco’s expansion strategy, especially for packaging and specialised building materials like gypsum boards, also known as “drywall,” strengthening the local supply chain for current and future projects. PIF has a diversified portfolio of investments in the construction services sector to support the sustainable growth of the Saudi economy, attract local and foreign investments, expand operational capacity and transfer technology.

PIF is empowering 13 priority sectors locally, in partnership with private businesses,