Saudi Arabia's Food Products Company said it has approved in principle a merger offer from another Saudi firm to form a regional food producing and marketing giant. Food Products said in a statement received by Reuters on Monday, May 28, that its board of directors on Saturday approved the offer from Ajwa Group of Food Industries "to boost the company's competitive edge and to meet the requirements of the coming phase characterized by giant economic blocks".
It said it would start taking organizational steps and carry out the necessary studies to ensure the rights of all parties concerned. The statement gave no further details. Saudi newspapers said the new entity would have a capital of around 600 million riyals ($160 million).
Ajwa Group is a leading supplier of processed rice in the Middle East and a key player in the region's grain and edible oil sectors. Its subsidiaries include Rice Milling and Trading Industries, Grain Processing and Stevedoring Terminal, Gulf Vegetable Oil Company (Nabati), Saudi Tunisian Company of Edible Oils (STUCO) and AJWA Port Services. ― (Reuters, Riyadh)
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