Takween Gets GAC Nod to Buy Chinese Partner's 70% Stake in SAAF

Takween shares traded flat on the Saudi exchange Sunday. The stock has fallen about 12% this year, underperforming the broader Tadawul index. Investors have been watching for catalysts tied to the company's restructuring efforts.

The acquisition gives Takween full strategic control over SAAF's capacity and customer relationships. The subsidiary produces plastic packaging for food, beverage, and industrial clients. Full ownership allows Takween to integrate SAAF's operations more tightly with its own manufacturing network.

Takween has been working to reduce debt and improve margins. The company reported a net loss of 47 million riyals in the first quarter, narrower than a year earlier. Management has cited cost cuts and operational efficiencies as priorities.

The Chinese partner's exit from the joint venture follows a broader trend of foreign firms reassessing Saudi partnerships under the new regional headquarters rules. Some international companies have restructured joint ventures to comply with local ownership requirements.

Takween expects to close the SAAF acquisition in the coming months. The company will fund the purchase from existing cash and bank facilities. No further regulatory approvals are required beyond the GAC clearance.