Saudi Dairy Producer to Hold Talks With Danone Unit for Merger
National Agricultural Development Co., the Saudi dairy producer part owned by the kingdom’s sovereign wealth fund, plans to start talks with Danone SA’s venture in the country for a potential combination.
Shareholders of the privately-held Al Safi Danone will own 38.75 percent of National Agricultural Development Co. at the completion of the proposed transaction, according to a statement to the Saudi stock exchange. The companies signed a six-month non-binding MoU to conduct financial, commercial and legal due diligence.
The merger plan follows banking and insurance companies in Saudi Arabia starting talks on potential combinations. HSBC Holdings Plc and Royal Bank of Scotland Group Plc’s ventures in the kingdom are exploring a potential merger, while at least four insurance companies said earlier this year that they are studying plans for the same.
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