Last Updated: Wed Dec 21, 2011 11:41 am (KSA) 08:41 am (GMT)

Saudi dairy company giant buys an Argentinean farming firm in $83 million deal

Almarai, the Gulf’s biggest dairy firm by market value, purchased Argentinean company Fondomonte to secure feed for its dairy herd and poultry businesses. (File photo)
Almarai, the Gulf’s biggest dairy firm by market value, purchased Argentinean company Fondomonte to secure feed for its dairy herd and poultry businesses. (File photo)

Saudi Arabia’s Almarai Co, the Gulf’s biggest dairy firm by market value, has acquired Fondomonte SA which owns and operates farms in Argentina, to secure feed for its dairy herd and poultry businesses, it said on Wednesday.

“The transaction value is 312 million riyals ($83 million) and is financed from a combination of operational cash flows and Islamic banking facilities,” Almarai said in a bourse statement.

Fondomonte SA has three farms totaling 12,306 hectares which focus on the production of corn and soy beans, the statement said.

In June Almarai said it plans to invest 4 billion riyals in the poultry sector.

Earlier this month Almarai said it plans to increase its capital by 73.9 percent to 4 from 2.3 billion riyals through the distribution of one bonus share for each 1.739 shares.

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