Molan Steel Co. has filed a lawsuit against Yara International Ltd. before the Riyadh Commercial Court seeking to annul its SAR 34.88 mln (USD 9.3 mln) acquisition of Mayar International Industry Co.
The company claims the purchase price was based on erroneous financial statements provided by Yara at the time of the November 30, 2024, transaction, which significantly inflated the deal’s value. Molan is pursuing the recovery of SAR 17 mln (USD 4.53 mln) already paid and the cancellation of all related liabilities and assets.
Molan said it has a strong legal basis for nullification, having formally notified Yara of its intent after failed settlement attempts. The company does not expect to incur liabilities from the case and pledged to disclose further developments.
The dispute follows a preliminary judgment last month in a separate case filed by Yara, in which the Riyadh Commercial Court ordered Molan to pay SAR 17.88 mln (USD 4.76 mln). Yara’s additional claims, including SAR 2 mln in damages, were dismissed. Both cases relate to Molan’s December 2024 acquisition of Mayar International.
Molan Steel is a key supplier of steel products for the construction and fabrication sectors across the Middle East.
1 USD / 3.75 SAR
