Saudi competition authority approves NADEC acquisition of Al Safi Danone

The Saudi General Authority for Competition (GAC) approved Monday the economic concentration arising from the National Agricultural Development Co.’s (NADEC) acquisition of Al Safi Danone.

In April, NADEC signed a final agreement to acquire 100 percent of Al Safi Danone Co. from Al Safi Holding Co. and Danone Dairy Investments Indonesia (DDII) through a share swap deal, according to data compiled by Argaam.

Under the agreement, Al Safi Holding will sell 34.95 million shares of ASD, representing 83 percent of share capital, NADEC said in a bourse statement.

Meanwhile, DDII will sell 7.16 million shares, representing 17 percent of ASD.

In exchange, NADEC will issue 44.5 million new shares to be issued to Al Safi and 9.11 million shares to DDII through a capital hike. The issued shares will represent 32.16 percent and 6.59 percent, respectively, of NADEC’s capital.