A consortium of Saudi’s food producer Almarai and US-based agriculture giant Archer Daniels Midland Co. (ADM.N) is among potential bidders for Saudi Grains Organization’s (SAGO) four milling companies, Reuters reported citing sources familiar with the matter.
Italian wheat supplier Casillo Group, Turkey's TAV Group, and Saudi Arabia's Al Rajhi Holding Group are considering bids.
SAGO has set the beginning of Q3 as the deadline for receiving bids.
The state-owned milling organization has said that HSBC will be the financial advisor on the privatization of its milling operations. It did not disclose the value of the deal, nor any other details.
Director General of SAGO, Ahmed Al Fares, said in January that the organization had transferred the ownership of four of its flourmill companies to the Public Investment Fund, Argaam earlier reported.
The Saudi cabinet decided in November 2015 to privatize SAGO’s flourmills, which will be monitored by the Public Investment Fund and SAGO.
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