Kuwait's Mezzan Set To Launch JV Operations In Saudi
Category: Kuwait

Mezzan Holding, one of the largest food, beverage, FMCG and pharma manufacturing and distribution companies in the Gulf, has announced that it is in talks with Saudi Arabia's Al Faisaliah Group to set up a joint venture in Saudi Arabia.

The Kuwaiti company said the new JV firm would operate in the Gulf kingdom's food manufacturing and distribution sector.

Mezzan Holding vice-chairman, Mohammed Al Wazzan, said: "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."

Mezzan Holding is a Kuwait Stock Exchange-listed company that operates 29 subsidiaries and employs 7,500 employees and generates approximately 75 percent of its revenues through retail-based activities.

Under the terms of the JV agreement, Mezzan Holding will acquire a 70 percent stake through a capital increase in a food and beverage manufacturing and distribution entity, Al Safi Food Company, currently owned by Al Faisaliah, which will retain the remaining 30 percent stake, a statement said.

The transaction is expected to close in six to eight weeks subject to satisfying certain precedent conditions and obtaining regulatory approvals, the statement added.

Mezzan Holding's investment in the JV, which will be based in Riyadh, is expected to be up KD7.7 million.

Mezzan Holding said the new JV will allow it to manufacture, market and distribute food products in Saudi Arabia, and award it exclusive rights to continue to manufacture, market and distribute Al Faisaliah Group's bakery and snacks products line, as well as the exclusive rights to import, manufacture, sell and distribute all Mezzan Holding brands.

Al Faisaliah Group is a privately-held, multi-business group headquartered in Saudi Arabia and has strategic partnerships and joint ventures with leading global firms including Sony, Danone, Philips, and Accenture.



02 Jul, 2016 0 493
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