Budget Saudi, a leading provider of comprehensive mobility solutions in Saudi Arabia, has announced the successful acquisition of Al Jazira Equipment Company (AutoWorld), a vehicle leasing firm owned by SEDCO Holding. Shareholders approved this transaction at an extraordinary general meeting, allowing Budget Saudi to issue seven million ordinary shares to SEDCO Holding, which will soon hold an 8.96% stake in Budget Saudi. AutoWorld’s 14,000-vehicle fleet will be integrated into Budget Saudi’s operations, bolstering its market share in long-term vehicle rental and leasing from 12% to 18%. This acquisition aims to capitalize on the growing Saudi economy and trends like the shift from asset ownership to usership in the transportation sector. Budget Saudi also plans to merge its Payless brand with AutoWorld to target price-conscious customers which include residents, business travelers, and tourists. Cost synergies and efficiency improvements are expected to materialize within three years, potentially leading to EPS accretion. The consolidation will also strengthen the combined entity’s negotiating power with suppliers and enhance customer satisfaction and loyalty through unified branding and service offerings.

Transportation and Logistics, Automotive, Financial Services,Saudi Arabia

https://www.zawya.com/en/press-release/companies-news/budget-saudi-announces-successful-acquisition-of-autoworld-g13amjsm