French dairy multinational Danone has agreed to sell its joint venture Al Safi Danone to Saudi Arabia’s National Agricultural Development Company (NADEC) for an undisclosed sum, according to media reports.
Al Safi Danone produces dairy and juice products for the Saudi Arabian market and was formed by Danone and Al Faisaliah Group Holding in 2000, with Danone holding the majority share in the business.
Under the terms of the deal, NADEC will buy 100% of the shares in Al Safi Danone and, in exchange, Al Safi shareholders will own 38.8% of NADEC.
In a statement, NADEC said the acquisition would boost its dairy portfolio and strengthen its presence throughout the region, including Saudi Arabia, UAE, Kuwait, Bahrain, Jordan and Lebanon, in addition to new countries such as Iraq and Oman.
Commenting on the move, NADEC managing director Abdulaziz Al Babtain said: “The transaction will allow both companies to better serve customers and realise benefits not available on a standalone basis. It will create a platform for future growth and, importantly, drive significant value creation for shareholders”.
Source: Just Food / Reuters / Foodbev
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