Saudi food firms NADEC, Al Safi Danone to discuss possible merger

09/10/2017 06:54 AST

National Agricultural Development Company (NADEC) and Al Safi Danone Company (ASD) have entered into a non-binding agreement to explore a possible merger.

"The term of the MOU [Memorandum of Understanding] is for a period of six months. The parties have agreed on an exclusivity period during which they will conduct financial, commercial and legal due diligence," NADEC said in a disclosure to the Saudi stock exchange. Under the memorandum of understanding, NADEC is proposing to buy all shares of ASD and in exchange offer new NADEC shares to ASD's current shareholders, which will be implemented through a capital increase.

"Subject to confirmation during the due diligence phase, at completion of the Proposed Transaction, the current ASD shareholders will, in aggregate, own 38.75 percent of NADECs pro forma issued share capital," NADEC told the Saudi bourse.

ASD, engaged in the production of fresh dairy products and juices, is a joint venture between Saudi Arabia's Al-Faisaliah Group and French food firm Danone Group.

"The Proposed Transaction will be subject to a number of conditions including, without limitation, entry into definitive agreements, NADECs EGM approval and ASDs shareholder approvals and obtaining the necessary approvals from the relevant government authorities," NADEC said.

"The entry into these discussions does not guarantee that the Proposed Transaction will be completed."


Arab News

News

Saudi Arabia's Nadec acquires Al Safi Danone

30/03/2018

Saudi Arabia-based Al Safi Holding, a unit of Al Faisaliah Group, has sold its shares in Al Safi Danone Company (ASD), a producer of dairy and juice products, to National Agricultural Development Co

Trade Arabia

Saudi Arabia's Nadec to buy Al Safi Danone through $143m capital increase

26/03/2018

Nadec, the Saudi food and beverage company in which the kingdom's sovereign wealth fund has a 20 per cent stake, agreed to buy rival Al Safi Danone in a deal that will be funded through a 536 million

The National

NADEC signs MoU with SAFI DANONE Company Limited

08/10/2017

National Agricultural Development Company (NADEC) is pleased to announce that it has entered into a non-binding memorandum of understanding (the MOU) on 17/1/1439H corresponding to 7/10/2017G with Al

Tadawul

Most Viewed Companies

Ticker Price Volume

Valuation

NADEC Sector Market
P/E
Price/BookValue

Momentum

Relative Strength
  • 1-Month
  • 3-Month
  • 1-Year
Volume Change
  • 10D Avg Vs 90D Avg
Price Vs…
  • 52-w high
  • 50-day moving avg.
  • 200-Day Moving Avg

Top Related Companies

Ticker Price Change
ALMARAI 45.46 0.06 (0.13%)
SAVOLAGROUP 29.66 0.30 (1.02%)
SADAFCO 226.00 0.00 (0.00%)
FIRSTMILLS 52.15 -0.50 (-0.95%)
ARABIANMILLS 48.60 0.08 (0.16%)

Recent News

NBB plays key role as Joint Lead Manager in Bahrain's $1bn sovereign bond issue

18/06/2026

National Bank of Bahrain (NBB) acted as Joint Lead Manager and Bookrunner in Bahrain's successful $1 billion 10-year international bond issuance.

The bank's involvement reinforces its role

Trade Arabia

NBK launches rewarding cashback offers for new credit card customers

18/06/2026

As part of its firm commitment to providing a seamless and comprehensive digital banking experience, and its continuous dedication to rewarding its customers and delivering added value that meets the

Kuwait Times

Al Mohafaza Education Reschedules Interest-Free Loan with Related Party

17/06/2026

Al Mohafaza Company for Education has announced the rescheduling of an interest-free loan obtained earlier this year from Maroum Drilling Medical Services Company, a related party. The loan, valued a

Gulfbase

Dar Al Majed Real Estate Expands Presence with New Jeddah Sales Center

17/06/2026

Dar Al Majed Real Estate Company, known commercially as Al Majdiah, has announced the official opening of its new sales center in Jeddah. The facility is strategically located on King Abdulaziz Road

Gulfbase

NBB unveils Summer Cashback Campaign

17/06/2026

THE National Bank of Bahrain (NBB) has launched its Summer Cashback Campaign, offering credit cardholders the opportunity to maximise their international spending during the peak vacation season.

GDN Online

logo

Financial Information Co.

Saudi Arabia

GCC Markets

Mutual Funds

News

Investment Tools

Sector News

Screeners

Indices & Commodities

Downloads

Copyright ©2001 - 2025, Financial Information Co. All Rights Reserved.

Terms of Services | Privacy Policy | Advertise with us | Contact Us | Sitemap