Logo of Almunajem Foods Co.
Almunajem Foods Co. signed, on Feb. 27, a non-binding memorandum of understanding (MoU) to acquire 51% of the Alwashim Poultry Co., according to a Tadawul statement.
The MoU will allow negotiations, along with financial and legal due diligence on the potential acquisition. It also seeks to identify possible ways to conclude the deal, the statement added.
The proposed acquisition will be subject to regulatory approvals from the relevant authorities, including the General Authority for Competition (GAC).
The MoU is valid until July 31, 2023, renewable with the consent of both parties. No related parties are included in the transaction, the statement said.
The financial impact cannot be determined at this stage and any material developments will be announced in due course, it noted.
Alwashim Poultry, a closed joint stock company established in 1977, is engaged in the production, processing and distribution of poultry products in the Kingdom. It provides all stages from hatching eggs through reaching the final product, in addition to feed production.
The acquisition is in line with Almunajem Foods' strategy and plans to enhance the integration of its operations and increase local content, the company said.
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