Saudi merger creates largest Arab food company
The Saudi Ajwa Food Industries Company and the Saudi Food Products Company are expected to finalize and sign a merger agreement within the upcoming months.
The merger will result in a major food industry entity valued at 600 million Saudi Riyals in capital ($160 million), according to recent reports published in the London based Al-Hayat daily. The new conglomerate will be the largest of its kind in the Arab world.
The Saudi food market offers investors enormous business opportunities. Market sources expect the value of the food market to increase by three to four percent annually throughout the next 10 years. As a result, by 2010, the food industry turnover will reach SR 78.5 billion ($20.9 billion). — (MENA Report)
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