Saudi group Savola eyeing $5.4bn Almarai stake sale
RIYADH, October 18, 2023
Saudi food conglomerate Savola Group has confirmed that it’s exploring options for its $5.3 billion holding in the Middle East’s largest dairy firm, in what could be one of the region’s biggest merger and acquisition deals, reported Bloomberg.
Almarai, the largest dairy company in the Gulf , specializes in food and beverage manufacturing and distribution.
It was set up in the 1970s as a dairy company. Since then, it has branched out into other areas such as bakery products and poultry.
Savola said it’s working with Moelis & Co. to review strategic options for its 35% stake in Riyadh-based Almarai.
“While no decisions have been made at this stage in relation to the potential sale of a portion of its stake in Almarai, this is one of such options under consideration,” the company said in a stock market filing on Tuesday.
Talks are at an early stage and Savola may decide not to sell, according to people with knowledge of the matter. A representative for Almarai didn’t immediately respond to requests for comment. A representative for Moelis declined to comment.
Shares in Savola closed almost 10% higher on Monday, while Almarai fell 1.2%. Savola gained as much as 6.8% on Tuesday, while Almarai was steady.
A key investor in food and retail sector, Savola also has interests in venture capital and private equities. In 2021, it had signed a deal to buy the UAE’s Bayara Holding for $260 million. A year later, it purchased bakery assets in Egypt, a key market for the firm.
