Saudi Arabian retail company Savola has increased its stake in food company Almarai to 36.5% by buying shares worth SAR2bn ($533m).
The company, which is also involved in sugar business, previously held 29.95% stake in Almarai.
Savola said that the deal is a part of its strategy to further grow its exposure in its core sectors, of which the foods sector is one of them. The company funded the deal with its own cash reserves and Islamic loan financing provided by local banks.
In 2010, Savola boosted its holding in Almarai from 26.5% to 29.95%. Over the years, the company expanded its retail and sugar business in Saudi Arabia, in order to boost its revenues.
Almarai, based in Riyadh, Saudi Arabia, manufactures dairy and juice products under the Almarai brand; bakery products under the L'usine and 7 Days brands; and poultry products under the Alyoum brand. In addition, Almarai and PepsiCo jointly run International Dairy and Juice in the kingdom.
