One of Saudi Arabia’s largest food producing firms Savola Group has entered the final round of negotiations with Takween Advanced Industries for the sale of its packaging unit, Takween.
Savola had announced the signing of a non-binding memorandum of understanding (MoU) on 22 July 2014, leading to the beginning of exclusive discussions with Takween in relation to the proposed acquisition of the entire share capital of Savola Packaging which is a wholly owned subsidiary of Savola.
Savola had said that it wants to sell its entire stake in Savola Packaging so it can focus on its core sectors of food and retailing.
While the MoU had the initial term of about 16 weeks, up to 11 November, the companies extended their talks to 31 December, 2014.
According to a statement released by Takween on Sunday, the company said that they are still in the process of determining the value of the company. However, a new deadline for the deal was not mentioned.
The deal would be implemented depending on the approval from related government agencies.
Established in 1979, the Savola Group specialises in manufacturing and marketing edible oil and vegetable ghee in Saudi Arabia.
The company claims to be one of the most successful and fastest growing multinational food groups in the Gulf and the Middle East Region, North African and Central Asian countries (MENACA).
Its portfolio of businesses and activities includes edible oils, vegetable ghee, sugar and pasta. The company also has significant investments in leading publicly-listed Saudi companies, investment funds and real-estate businesses.
Image: The Savola Group specializes in producing edible oils, vegetable ghee, sugar and pasta. Photo: courtesy of Idea go/freeditialphotos.net.
