RIYADH: Saudi car rental firm United International Transportation Co. is set to acquire a 70 percent stake in the UAE’s freight forwarder Overseas Development through a recent deal. The company, also known as Budget Saudi Arabia, said in a Tadawul statement that the purchase amount was based on the financial evaluation of the acquisition and came in at 13.34 million dirhams ($3.63 million). The new sale and purchase agreement comes following the company’s announcement in March that it will procure 70 percent of Overseas Development LLC’s shares in its subsidiaries in Saudi Arabia, UAE, and Kuwait as part of a memorandum of understanding signed at the time. In February, the vehicle leasing company was given the go-ahead by the Kingdom’s competition watchdog to acquire Al-Jazira Equipment Co. In a Saudi Stock Exchange statement, it was revealed the General Authority for Competition had issued a no-objection notice regarding Budget Saudi Arabia’s complete purchase of the operational lease and car maintenance company, also known as Auto World. In 2023, the firm’s net profit after zakat and tax stood at SR277 million ($73.89 million), reflecting a 10 percent surge compared to 2022 figures. The increase in net profit in 2023 compared to the previous year was due to maximizing the utilization of the firm’s expanding fleet, both in short-term and long-term rentals. This, coupled with the increased sale of used car units compared to 2022, significantly propelled revenue growth. In August 2023, Budget Saudi Arabia signed a non-binding memorandum of understanding to acquire all shares of Auto World by issuing stocks to its owner, the Saudi Economic and Development Co., known as SEDCO. Budget Saudi is the holder of the largest Budget International franchise. The company has provided its services for over 45 years while building a diverse customer base and operating a fleet of more than 35,000 vehicles. The firm also offers various transportation services throughout the Kingdom, including long-term and short-term car rental and the sale of used cars.