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FINANCIAL NEWS
Saudi Arabia’s Almarai creates JV with US firm
31 Mar 2010
(MENAFN) The Chief Executive Officer at Mead Johnson Nutrition Co. said that the company will partner with Saudi Arabia’s Almarai Co to make baby food products in the Gulf region, Arab News reported.
The joint venture, which will be held 50 percent by Almarai, will draw on the two partners’ complementary brands and capabilities, Almarai, the Gulf’s largest dairy company by market value, said in a bourse statement, adding that the joint venture is expected to start production in 2011, the statement said.
‘The JV will benefit from Mead Johnson’s product knowledge, while Almarai can easily bring to the table its local market understanding, its dairy supply, and to a certain extent, its distribution network capabilities, according to analysts.
Almarai, which has been diversifying its sources of revenue through acquisitions, recently acquired two companies in the Middle East and is looking at more opportunities in Egypt, after spending $115 million last year to buy an Egyptian dairy firm.
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