Saudi Arabian food and beverage group Almarai’s planned acquisition of Jordan-based peer Hammoudeh Food Industries has fallen through.
In a brief statement yesterday (17 March) on the Saudi stock exchange Tadawul, the publicly listed Almarai said: “Almarai announces that its planned acquisition of Hamoodah Food Industries in Jordan was not completed due to factors beyond the company’s control, as the seller was unable to meet certain conditions required to complete the transaction.”
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The statement went on to say: “Almarai remains open to exploring future expansion opportunities, recognising the strategic importance of strengthening regional operations and expanding geographically to serve consumers in various markets.”
The deal was announced in October when it was revealed that Almarai had struck a deal to buy Hammoudeh Food Industries, the food and beverage manufacturing arm of the Hammoudeh conglomerate, for SR263m ($70.1m at the time).
Almarai, which operates in the dairy, poultry, bakery, infant-nutrition and juice sectors, had moved to carry out the transaction through its Teeba Investment for Developed Food Processing Company subsidiary.
Hammoudeh has a range of products covering dairy, juices, poultry and eggs.
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By GlobalDataIn a statement announcing the deal, Almarai described Hammoudeh Food Industries as “a well-established dairy and cheese business, with a long heritage of over 50 years in the Jordanian market”.
It added: “This acquisition strengthens Almarai’s position in Jordan and aligns with the company’s broader growth strategy announced earlier this year to maintain sustainable growth in core markets and geographies.
“By acquiring Hammoudeh Food Industries, Almarai will enhance its ability to better serve customers in the region, expand its operations and product range and leverage operational scale in Jordan to drive both sales growth and profitability.”
Almarai was founded in 1976 by Prince Sultan bin Mohammed bin Saud Al Kabeer.
Just Drinks has asked Almarai and Hammoudeh for further clarification as to why the deal fell through.
