BLOG

Olam acquires 10% stake in Saudi flour mill company

08 December 20212 min reading

Olam, a leading food and agri-business, acquired a minority stake of 10% of the Saudi flour mill company with operational responsibility for an equity consideration of SAR 49.5 million ($18.0 million).

The acquisition of one of the flour milling companies tendered for privatisation by the National Centre for Privatization (NCP) and the Saudi Grains Organization (SAGO), has been completed by the consortium, comprising National Agricultural Development Company (NADEC), Al Rajhi International for Investment Company, Ajlan & Bros and Olam International (collectively, the Consortium). 

As a member of the Consortium, Olam will participate as the technical partner with a minority stake of 10% in Food Security Holding Company1 (JVCo) and the remaining 90% owned by the other members of the Consortium.  Olam will have responsibility for managing plants and operations. Utilising its extensive experience in owning and operating flour mills in West Africa, Olam will capitalise on its know-how and capabilities to achieve best in class efficiencies and profitability.

With the completion of the acquisition, the JVCo owns manufacturing plants in three locations – Riyadh, Hail and Jazan – with a combined wheat milling capacity of 1.3 million metric tonnes and feed milling capacity of 180,000 metric tonnes, which service growing domestic demand.

“This investment supports our strategy to expand our wheat milling footprint in key markets across Africa and the Middle East. Over the past decade, Olam has built a world-class wheat milling business and established itself as a leading miller in Africa. This acquisition is part of our entry strategy into the Kingdom of Saudi Arabia,” said Saurabh Mehra, President of Olam’s wheat milling business. “The JV will allow us to leverage our best-in-class technical expertise while gaining valuable insight into doing business in the country” he added.

 

 


Articles in News Category
13 September 20183 min reading

Study sheds light on stem cell proliferation that may one day boost crop yields

A Purdue University study has uncovered mechanisms that lead to stem cell formation and maintenance...

12 April 20183 min reading

Turkey is number one in flour export, says Minister

Ahmet Eşref Fakıbaba, Minister of Food, Agriculture and Livestock, said Turkey is the number one co...

02 May 20162 min reading

Çelik: “Food is an important, prevalent and irreplaceable sector”

Food sector representatives under the Presidency of Şemsi Kopuz, the President of the Federation of...