Saudi Binladin Group 'faces major revamp'
RIYADH, May 25, 2018
Saudi Arabia's construction major Saudi Binladin Group (SBG) will be slimmed down and renamed, a Reuters report said quoting six sources familiar with the matter.
This follows the government seizing management control of the construction giant from family members that were swept up in an anti-graft drive, it said.
The company, crucial to the state’s plans for major tourism and infrastructure projects, is now being run by a five-member committee appointed by the government to oversee the shake-up.
The restructuring, expected to include hundreds of layoffs, is intended to streamline operations at the conglomerate, which has spawned more than 500 units ranging from construction to energy since its formation in 1931, said the sources, who are engaged in the process or have been informed about it, according to the Reuters report.
As part of the reorganization, a new holding company will be formed with a new name, four of them said, without saying whether the name has been chosen or what it might be.
