Riyadh – Mubasher: Saudi Arabian Amiantit signed a joint venture agreement with the Austrian holding WIG Wietersdorfer Holding GmbH (WIG) on Monday.

Under the agreement, WIG's European pipe manufacturing and sales companies and its Flowtite technology will be merged with the Hobas AG group of companies in Europe.

Pipe business contributes SAR 470 million (€120 million) yearly sales to Amiantit in Europe, with estimated profits of SAR 6.6 million (€1.6 million) in 2016.

The Combined contributed assets and liabilities will amount to SAR 381.2 million (€96.3 million) and SAR 185.2 million (€46.8 million), respectively, according to a bourse filing.

The valuation of both businesses is performed by Price Waterhouse Coopers. Each of the parties will own 50 percent of the merged entity, the statement said.