Danone has agreed to sell its Saudi Arabian joint venture dairy company Al Safi Danone (ASD) to the National Agricultural Development Company (NADEC) for an undisclosed sum.
Al Safi Danone produces a range of dairy and juice products for the Saudi Arabian market, and was formed as part of a partnership between Danone and Al Safi Group.
NADEC funded the purchase through a 536 million Saudi riyal ($143 million) capital increase.
As a result of the transaction, board members of Al Safi Danone will now hold approximately a 38.75% stake in NADEC.
NADEC said the acquisition will bolster its dairy portfolio and strengthens its presence throughout the region, including Saudi Arabia, UAE, Kuwait, Bahrain, Jordan and Lebanon
Abdulaziz Al Babtain, managing director of Nadec 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.”
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