The deal expands Miahona’s water distribution footprint in Riyadh and strengthens its position in industrial water services.

Miahona has signed an agreement to acquire 100% of SHAS Water Company, including its stakes in affiliated subsidiaries, in a deal valued at around USD 25.2 million (SAR 95.01M).  The transaction could rise to around USD 27.3 million (SAR 102.71M if SHAS achieves certain financial performance targets tied to its audited 2025 results.

The acquisition forms part of Miahona’s strategy to expand its presence in Riyadh’s water distribution market. This comes as demand for water infrastructure and services continues to grow across residential, commercial, and industrial segments.

Why You Should Care

The transaction gives Miahona a larger footprint in Riyadh’s water distribution sector and deepens its exposure to industrial water services, an area expected to see increased demand as Saudi Arabia continues to expand its industrial base.

The seller is Al Manhal Water Factory Company, a subsidiary of Nestlé Waters. Miahona said the acquisition will be financed through a combination of internal resources and existing financing facilities.

Founded in 1998, SHAS owns and operates water facilities in Riyadh and provides distribution services through both networked and non-networked infrastructure. The company generated revenue of SAR 49.14 million (USD 13.1 million) in 2024, up from SAR 46.52 million (USD 12.4 million) in 2023.

Established in 2008, Miahona is a Saudi Joint Stock Company (JSC). It is a developer and operator of sustainable water and wastewater solutions across Saudi Arabia.

The acquisition aims to broaden Miahona’s customer reach across Riyadh while enhancing its ability to serve commercial, residential, and industrial clients.

The Ripple

The acquisition reflects broader consolidation across Saudi Arabia’s water sector as operators seek to expand infrastructure capabilities and secure greater market share. Water demand is rising alongside population growth, urban development, and industrial expansion. This is creating opportunities for established operators to scale through acquisitions rather than greenfield investments.

For industrial cities in particular, the transaction could strengthen the availability of specialized water services, while allowing Miahona to capture operational efficiencies across its growing portfolio of assets.

The deal may also signal continued M&A activity within Saudi Arabia’s utilities sector as companies position themselves to support the Kingdom’s long-term infrastructure and economic diversification goals.

What to Watch

The acquisition remains subject to approval from the General Authority for Competition and other relevant regulatory bodies. Miahona has emphasized that signing the agreement does not complete the transaction.

Investors will also be watching SHAS’ audited 2025 financial results, which will determine whether the final purchase price rises from SAR 95.01 million to the maximum potential value of SAR 102.71 million.

If approved, the acquisition will provide a clearer indication of how Saudi water infrastructure companies are using acquisitions to expand their reach and strengthen their role in serving the Kingdom’s growing industrial and urban markets.