Maaden unit to acquire 85% of Mauritius-based agrifirm for $140 mln
by Reem Abdellatif and Salwa Abdelrahman
Maaden Marketing and Distribution, which is wholly-owned by Saudi Arabian Mining Company (Maaden), has signed a deal to acquire 85 percent of Mauritius-headquartered Meridian Group, based on an enterprise value of $140 million (SAR 525 million).
Maaden’s acquisition of the African agrifirm and fertilizer producer comes as part of the Saudi company’s plan to expand its global footprint in key markets.
Earlier in April, Maaden CEO Darren Christopher Davis told Argaam in an exclusive interview that the company plans to add 3 million tons of phosphate fertilizers by 2025.
The transaction will be entirely financed from Maaden’s cash on hand, and relevant financial impact will appear on earnings of Q3 2019, Maaden said in a statement to the Saudi Stock Exchange.
The deal is set to be completed in Q3 2019, but is still subject to regulatory approvals.
The remaining 15 percent of Meridian is expected to be acquired over the next four years, Maaden estimated.
Meridian Group, which manufactures, distributes, and trades in agricultural commodities, employs over 3,000 people across Africa. The 25-year old agrifirm operates across Malawi, Mozambique, Zambia and Zimbabwe.
The company distributes Superfert Fertilizier, among other agricultural products, which are core commodities for Maaden.
There are no other related parties in the transaction between the Saudi company and Meridian, Maaden added in the statement.