Breaking News :

nothing found
September 22, 2021

Nadec to buy Danone unit in Saudi Arabia

Saudi Arabia’s National Agricultural Development Co. (NADEC) has revealed its plans of acquiring Danone SA’s venture in the country.

The acquisition will take place through a capital increase of 536 million riyals ($143 million). The acquisition will end up creating one of the kingdom’s largest dairy producers. The confirmation about the acquisition was provided through a statement to the Saudi stock market on Sunday.

Once the deal is completed, existing NADEC shareholders will own 61.25 per cent of the company, and Al Safi shareholders will hold 38.75 percent.

“The transaction will allow both companies to better serve customers and realize benefits not available on a standalone basis,” Abdulaziz Al Babtain, managing director of NADEC, said in the statement. “It will create a platform for future growth and, importantly, drive significant value creation for shareholders.”

NADEC shares rose as much as 8.4 per cent to 40.70 riyals. They closed at 39.38 riyals, the highest since September 2014.

Merger and acquisition activity in Saudi Arabia is picking up as slower economic growth encourages companies to combine to save costs, while new takeover rules make it easier to complete deals.

Sahara Petrochemical and Saudi International Petrochemical Co. said they were evaluating a merger earlier this month. HSBC Holdings Plc-backed Saudi British Bank and Alawwal Bank, in which Royal Bank of Scotland Group Plc owns a 40 percent stake, are in talks to merge, as are hospital operators Al Hammadi Co. for Development & Investment and National Medical Care Co.

NADEC, which is 20 percent owned by Kingdom’s Public Investment Fund, was advised by Morgan Stanley, while Al Safi was advised by Goldman Sachs.

Steven Anderson

Steven Anderson

Steven is an explorer by heart – both in the physical and the digital realm. A traveler, Steven continues to visit new places throughout the year in the physical world, while in the digital realm has been instrumental in a number of Kickstarter projects. Technology attracts Steven and through his business acumen has gained financial profits as well as fame in his business niche.

Read Previous

First gold backed Ethereum based DGX token launched

Read Next

FCA experimenting with global fintech sandbox