adm and almarai among companies eyeing saudi grains agency asset sale
Last Updated : GMT 09:40:38
Themuslimchronicle, themuslimchronicle
Themuslimchronicle, themuslimchronicle
Last Updated : GMT 09:40:38
Themuslimchronicle, themuslimchronicle

ADM and Almarai among companies eyeing Saudi grains agency asset sale

Themuslimchronicle, themuslimchronicle

Themuslimchronicle, themuslimchronicleADM and Almarai among companies eyeing Saudi grains agency asset sale

Archer Daniels Midland
Abu Dhabi - Arab Today

A partnership of US agribusiness giant Archer Daniels Midland (ADM) and Saudi foods group Almarai is among potential bidders for Saudi Grains Organisation's milling operations, the kingdom's sole supplier, sources aware of the matter said.

Italian wheat supplier Casillo Group and a partnership of Turkey's TAV Group, a construction and airports conglomerate, and Saudi Arabia's Al Rajhi Holding Group, a real estate concern, are also considering bids, the sources said. 

The state-owned Saudi Grains Organisation (SAGO), which handles the kingdom's grains purchases, is preparing to sell off its milling operations by placing them in four specially formed corporate entities while retaining other functions.

No details of the likely price of the milling operations were yet available, and it was hard to be precise as SAGO had never been run for profit, according to the sources.

Saudi Arabia is selling off parts of several state bodies in a bid to deal with lower oil prices and diversify its economy under its "Vision 2030" reform plan.

SAGO, one of the world’s largest wheat and barley buyers, is expected to be among the first to conduct asset sales, making it a model for how others might proceed.

Both SAGO and its financial adviser HSBC declined to comment on the agency's privatisation plans.

Almarai had no comment. ADM declined to comment on "rumours or speculation". Representatives from the other companies said to be considering bids were not immediately available for comment.

Deadline

SAGO is considering a deadline of as early as the third quarter of this year for pre-qualification of bidders, although that could change, the sources said.

One of the sources said the kingdom was keen for Saudi entities, in partnership with international companies with technical expertise, to be part of the bidding process.

SAGO said in January it had set up four milling companies in advance of a privatisation planned for later this year.

This came after the Saudi cabinet in 2015 approved the establishment of four joint-stock companies bundling the SAGO's wheat and feed milling operations, to be overseen by the state-owned PIF, Saudi Arabia's sovereign wealth fund, in coordination with SAGO.

According to a document by consulting group strategy& posted on SAGO's website, the agency would divide up its milling operations between those companies. SAGO would turn itself into a regulator and retain control of wheat purchasing and storage, it said.

A separate, more recent draft of the privatisation plan seen by Reuters added that the four companies would be expected to buy wheat from the government at subsidised rates and sell the output at fixed prices.

SAGO's 12 mills currently have a combined milling capacity of 13,980 metric tonnes per day, it said. According to the strategy& document, two more milling operations are expected to be on stream by 2025.

Saudi Arabia has become a major importer of wheat and barley since abandoning plans for self-sufficiency in 2008, as farming in the desert drained scarce water supplies.

One of the primary aims of the SAGO privatisation drive is to allow it to expand its grain storage operations in order to cater to the kingdom's fast-growing population, one of the sources said.

The agency currently imports the kingdom's entire wheat supply of around 3.5 million metric tonnes a year. It has said that demand for wheat is expected to grow at an annual rate of 3.2 per cent to reach 4.5 million tonnes a year by 2025, largely due to population growth.

Source :Times Of Oman

themuslimchronicle
themuslimchronicle

GMT 12:49 2018 Tuesday ,16 January

Tabarak Buys Majority Stake in a Private Company

GMT 16:01 2017 Tuesday ,19 December

BCCI board elections date set

GMT 08:05 2017 Sunday ,17 December

Malaysian Premier praises EDB

GMT 09:58 2017 Saturday ,16 December

Saudi Arabia launches new SR30bn export bank

GMT 08:30 2017 Saturday ,09 December

World Bank signs $1.15 billion loan with Egypt

GMT 17:18 2017 Thursday ,07 December

EDB highlights Bahrain investment advantages

GMT 14:44 2017 Tuesday ,05 December

Saudi oil minister reaffirms OPEC output squeeze
Themuslimchronicle, themuslimchronicle
Themuslimchronicle, themuslimchronicle

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

adm and almarai among companies eyeing saudi grains agency asset sale adm and almarai among companies eyeing saudi grains agency asset sale

 



Themuslimchronicle, themuslimchronicle

GMT 08:26 2018 Tuesday ,23 January

Five things to know about Davos

GMT 21:30 2017 Wednesday ,01 November

New York Times’ third-quarter revenue up 6.1%

GMT 11:09 2017 Friday ,24 November

Berlin police seeking more missing John Lennon items

GMT 06:34 2017 Saturday ,09 December

Rockets down Jazz for eighth straight NBA win

GMT 23:25 2017 Thursday ,16 February

Pakistan adds 16 new fighter jets to its fleet

GMT 10:50 2018 Tuesday ,23 January

Saudi university to open driving school for women

GMT 03:31 2017 Saturday ,07 January

Sharjah launches award for refugee support

GMT 21:54 2016 Wednesday ,01 June

December 21 - January 18

GMT 16:05 2017 Monday ,24 April

Sharapova's return divides rivals

GMT 13:50 2012 Sunday ,22 January

Egyptians can now remove any regime

GMT 07:26 2017 Sunday ,23 July

70 villagers kidnapped in Afghanistan
Themuslimchronicle, themuslimchronicle
Themuslimchronicle, themuslimchronicle
 
 Themuslimchronicle Facebook,themuslimchronicle facebook  Themuslimchronicle Twitter,themuslimchronicle twitter Themuslimchronicle Rss,themuslimchronicle rss  Themuslimchronicle Youtube,themuslimchronicle youtube  Themuslimchronicle Youtube,themuslimchronicle youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2023 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2023 ©

muslimchronicle muslimchronicle muslimchronicle muslimchronicle
themuslimchronicle themuslimchronicle themuslimchronicle
themuslimchronicle
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
themuslimchronicle, themuslimchronicle, themuslimchronicle