Riyadh – Mubasher: Saudi Arabian Refineries Company (SARCO) has announced that its subsidiary, Refineries Venture Company (Masafi Ventures) has signed a non-binding memorandum of understanding (MoU) with Khadra Al Hijaz Environmental Services Company, according to a bourse disclosure.
The agreement targets the acquisition of a 33% equity stake in Global Waste Solutions, marking a strategic move by the refinery-focused firm to expand its presence in the industrial waste management and environmental services sector.
The MoU was formally executed on 25 May 2026, considered a preliminary agreement that serves as a foundational step for Masafi Ventures to evaluate and potentially finalize a significant minority investment in Global Waste Solutions.
The counterparty in the negotiations, Khadra Al Hijaz Environmental Services, is the current holder of the interest under consideration.
The agreement is providing a structured period for both parties to conduct due diligence and negotiate the definitive terms of the equity transfer. Meanwhile, the duration of the MoU is set for three months from the date of signing. This period is intended to allow for a thorough assessment of the target company’s operational and financial standing. The agreement stipulates that the terms will remain valid for this 90-day window unless both parties mutually agree to an alternative arrangement in writing.
In terms of financial expectations, SARCO expects a positive impact on its financial results by the end of the fourth quarter (Q4) of 2026. This timeline suggests that the company expects the transaction to reach a definitive stage and begin contributing to the group’s consolidated performance within the current fiscal year.
Furthermore, the disclosure clarified that there are no related parties involved in the transaction, indicating that the negotiations and the eventual acquisition are being conducted independently and without any conflicts of interest involving the company’s board or major shareholders.
According to the regulatory filing, the primary objective of this proposed transaction is to facilitate the expansion and development of the company’s activities in the specialized field of industrial waste treatment and management.
Global Waste Solutions is positioned as a provider of comprehensive management services for a variety of industrial byproducts. Meanwhile, the scope of the company’s activities, which SARCO intends to develop through this acquisition, includes the treatment of caustic waste, acidic industrial waste, and alkaline industrial waste.
Additionally, the firm specializes in the treatment and remediation of oily sludge, a critical service for maintaining environmental standards within the broader energy and refining industries.
It is worth noting that SARCO recently signed another non-binding MoU with a Chinese company to develop a comprehensive green ammonia and hydrogen infrastructure project in Jazan Industrial City.
