Saudi Arabia: Nadec abandons plan to acquire Al Safi Danone

Nadec, the National Agricultural Development Company of Saudi Arabia, has abandoned plans to acquire food and beverage firm Al Safi Danone, jointly held by Al Safi Holding and Danone Dairy Investments Indonesia, according to a report in The National.

Nadec is said to have signed a share purchase agreement with Al Safi Holding last year to acquire 100% of Al Safi Danone, funded through a SAR536 million ($142.91 million) increase to its share capital.

“In light of changes to market dynamics since the execution of the agreement, the board of Nadec and Al Safi Danone shareholders have concluded that the transaction as previously contemplated is no longer in their best interests”, Nadec said.

The company will “now focus on the execution of its standalone corporate strategy”, it added.

Source: The National