Tahweel Holding completes acquisition of plastics conversion firm Al Rowad Industrial Transformation Company

Compass Lexecon assisted Tahweel Holding during the acquisition process of Al Rowad Industrial Transformation Company from National Industrialization Company (Tasnee). The parties are both active in the flexible film packaging sector. We provided a competitive assessment of the proposed transaction for submission to the Kingdom of Saudi Arabia General Authority for Competition. The GAC issued a no-objection letter in July, after which the Parties were able to successfully complete the deal at the end of August 2026.

Situation

Tahweel Holding (Saudi Holding Company for Conversion Industries) is an industrial investment and operational company. It signed a deal with petrochemical group Tasnee to acquire 100% of the share capital of its entity Al Rowad Industrial Transformation Company. Al Rowad is a leading group in the plastic conversion industry. Both parties are active in the flexible film packaging sector, used for, inter alia, food and consumer goods.

Our role

A Compass Lexecon team assisted Tahweel Holding and its counsel from Baker McKenzie in Saudi Arabia. We provided a competitive assessment of the proposed transaction, which we submitted to the Kingdom of Saudi Arabia General Authority for Competition. This included an analysis of the relevant markets including trade flows, market concentration, competitive constraints and expected efficiencies. The economic evidence supported the view that the transaction would generate benefits to customers including a greater range of film grades and shorter lead times and would increase the competitiveness of the Parties relative to larger scale, international suppliers.

Outcome

The KSA GAC issued a no-objection letter in relation to the economic concentration associated with the transaction in July 2026, after which the Parties were able to successfully complete the deal on 31 August 2026.

The team

Paul Reynolds, Abigail Davis and Ann-Christine Scwegmann of Compass Lexecon worked with David Monnier and Marwan Othman of Baker McKenzie in advising the parties and obtaining successful clearance from the General Authority for Competition of the Kingdom of Saudia Arabia.