Kuwait’s Mezzan Holding plans JV in Saudi with Al Faisaliah Group

Kuwait-based manufacturer Mezzan Holding is discussing a possible joint venture agreement with Saudi Arabia's Al Faisaliah Group to set up a food manufacturing and distribution business in Riyadh.

Under the terms of the potential agreement, Mezzan will acquire a 70 percent stake through a capital increase in Al Safi Food Company– Al Faisaliah’s food and beverage manufacturing and distribution unit, the Kuwait-listed firm said in a statement.

Mezzan’s investment in the joint venture is expected to be between KWD 7 million and KWD 7.7 million. The transaction is expected to close in six to eight weeks, subject to conditions and regulatory approvals.

 “Saudi Arabia represents a key growth market for our company, and Al Faisaliah Group is a strong, reputable company that we look forward to partner with to grow our Saudi business,” Mohammed Al Wazzan, vice-chairman at Mezzan, said in the statement.

The joint venture will allow Mezzan to manufacture, market, and distribute food products in the kingdom. It will also gain exclusive rights to manufacture, market, and distribute Al Faisaliah Group's bakery and snack products.

Mezzan will also have the exclusive rights to import, manufacture, sell, and distribute all of its brands.

Headquartered in Saudi Arabia, Al Faisaliah Group is a privately-held, multi-business group predominantly operating in the Middle East.

Mezzan Holding, which generates approximately 75 percent of its revenues through retail, operates mainly in food, beverage, FMCG, and pharmaceutical sectors.