Knauf Acquires Majority Stake in Saudi Mining Company
Global building materials leader Knauf has announced its planned acquisition of a majority stake in United Mining Industries, a leading Saudi Arabian building materials manufacturer. This strategic move reinforces Knauf’s long-term commitment to the Kingdom of Saudi Arabia and the broader Gulf Cooperation Council region.
The acquisition will grant Knauf a 63.2% majority stake in United Mining Industries, which serves markets across Saudi Arabia, GCC countries, and the Middle East region. Following completion of this private transaction, Knauf intends to launch a public tender offer to acquire up to 100% of the company’s shares, subject to regulatory approvals from the Saudi Financial Market Authority and compliance with relevant merger and acquisition regulations.
Strategic Investment Supporting Vision 2030
Knauf has maintained operations in the Middle East for over 30 years, with Saudi Arabia representing one of the group’s most important emerging markets and a cornerstone of its regional strategy. This acquisition aligns with the company’s commitment to supporting industrial growth, sustainable development, and the achievement of Saudi Arabia’s Vision 2030 objectives.
“United Mining Industries has a strong industrial foundation and distinguished market presence in Saudi Arabia. By combining this base with Knauf’s global manufacturing expertise, innovative capabilities, and technical knowledge, we aim to support the Kingdom’s localization agenda and contribute to developing a more resilient and competitive construction sector,”
Paul Patton, General Manager, Knauf GCC
Long-Term Development and Operational Excellence
Engineer Rayed Ibrahim Al-Mudaiheem, Chairman of United Mining Industries, emphasized the significance of this partnership: “We view this step as a long-term development phase focused on enhancing operational and manufacturing capabilities within the Kingdom and accelerating growth plans according to quality priorities and performance efficiency. The entry of a global industrial investor of Knauf’s scale confirms the attractiveness of the Saudi market to foreign investors and demonstrates the strength of Saudi industry, proving the success of the Kingdom’s Vision 2030 plans.”
Knauf’s regional leadership team will oversee the integration process and future development to ensure business continuity and create long-term value for employees, customers, and business partners following regulatory approvals. The transaction remains subject to customary closing conditions and necessary regulatory approvals.
About Knauf Group
Knauf is an international building materials manufacturing group headquartered in Eindhoven, Germany. Founded in 1932 and family-owned, Knauf is the world’s largest producer of gypsum-based building materials and systems, high-efficiency energy insulation, and integrated ceiling solutions. The group operates over 300 production sites and sales facilities in more than 90 countries worldwide. In 2024, Knauf employed approximately 43,500 employees and achieved sales of €15.6 billion.
Lazard served as financial advisor to Knauf for this transaction, while AS&H Clifford Chance provided legal advisory services.
