ARASCO eyes SAGO’s flour mills; bidding due in 2018

Arabian Agricultural Services Co. (ARASCO), a privately-owned Saudi firm, is planning to bid for the Saudi Grains Organization’s (SAGO) milling operations, after it inked a memorandum of understanding (MoU) with US-based agricultural trader Bunge, chairman Abdul Latif Saleh AI Sheikh told Argaam.

The bidding process is expected to begin by 2018, he added.

The Saudi cabinet decided in November 2015 to privatize SAGO’s flour mills, which would be monitored by the Public Investment Fund and SAGO.

The state grain agency is preparing to for the sale by placing the milling operations in four specially formed corporate entities.

SAGO governor has said asset valuation will be finished by year-end.

Bunge is the second international commodities company to express interest in SAGO’s privatization.

Earlier, US agribusiness firm Archer Daniels Midland Co and Saudi foods group Almarai had also shown interest in bidding for SAGO’s milling operations, Reuters reported.

SAGO’s privatization is part of Saudi Arabia’s larger plan under its Vision 2030reform program, which aims to diversify the country’s economy away from oil revenue.