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Almajed OudCo. has signed a non-binding offer to acquire healthcare, beauty, and retail businesses across the GCC for SAR 392 million. The target includes 100% stakes in Saudi-based Al Safa Pharmaceuticals, UAE's Safa Al Khaleej Trading, and Qatari Wahat Alsafa, alongside 80% of Bahrain's The Beauty Secrets and 50% of Oman's Al Safa National Investment. The deal structure involves a mix of cash and newly issued shares, with the share price based on a 90-day volume-weighted average of SAR 151.01. The transaction remains subject to adjustments for net debt (SAR 224 million as of 2025) and final terms.
This potential acquisition expands Almajed Oud's footprint in the GCC's growing healthcare and beauty sectors, which are driven by rising consumer demand and government health initiatives. For traders, the deal could boost the company's revenue streams and diversify its portfolio, potentially enhancing its stock valuation. However, the non-binding nature and pending approvals mean execution risks remain, which could impact market sentiment.
For Gulf investors, the deal highlights strategic consolidation in regional healthcare and beauty markets. Key watchpoints include the final cash-share ratio, regulatory approvals, and the target companies' financial performance post-acquisition. The stock's reaction to future updates will also be critical for traders assessing momentum.
