Savola Group, Saudi Arabia’s largest food products company, is in talks to buy sweets and confectionery maker Sanabel Al-Salam in a deal worth $300 million, sources told Reuters.
Savola, which owns supermarket chain Panda, is keen to increase the quality and variety of its sweets offering, said the sources, who declined to be named as the matter was not public.
Talks between Savola and Sanabel Al-Salam’s shareholders could still falter and there’s no certainty a deal will be reached, the sources said.
“Adding Sanabel Al-Salam to Savola’s portfolio signals the company is hoping to expand, and improve its retail portfolio, and will also help eliminate some competition with its Panda bakery unit,” said one source.
Savola and Sanabel Al-Salam were not available for immediate comment.
The confectioner has 104 branches across the kingdom and a catering unit. It is owned jointly by Dubai-based NBK Capital Partners, the private equity arm of National Bank of Kuwait (NBKK.KW), and Dr. Saleh Bin Nasser AlFarhan, who founded the company in 1995.
Saudi retailers have been hit by lower consumer spending because of low oil prices and government austerity policies.
Savola reported a 96 percent drop in first quarter profit. Second quarter declined 9.5 percent even after a one off gain of 62 million riyals from the sale of a panda store in Dubai.
Savola sold two percent of its shareholding in dairy producer Almarai 2280.SE in a deal worth 1.12 billion riyals last month. The transaction will produce 694 million riyals of profit for the company.
By Hadeel Al Sayegh, Celine Aswad
The global snacking, international cereal and noodles, plant-based foods and North American frozen breakfast business will be known as Kellanova – home to brands such as Pringles, MorningStar Farms and Nutri-Grain. Kellanova’s portfolio will also encompass cereal brands, including Frosties, Special K, Krave and Coco Pops.
Nestlé is piloting refillable vending machines for its Milo and Koko Krunch brands as part of its effort to explore solutions that help to reduce the need for disposable packaging. In collaboration with digital start-up Qyos by Algramo, the machines will be available at two retailers in Indonesia during a 4-6 month trial period.
Carlsberg has announced that Jacob Aarup-Andersen will join the company as chief executive officer, replacing Cees ’t Hart, who will retire by the end of Q3 2023. Since 2020, Aarup-Andersen has served as CEO of ISS, a global facility services company that operates in 60 countries.