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Saudi Arabia’s leading integrated consumer food and beverage group Almarai will acquire the UAE production facility of Binghatti Beverages Manufacturing (BBM) for 215 million dirhams ($58.5 million).
In a filing on the Saudi bourse Tadawul Wednesday, Almarai said the acquisition will enhance its ability to serve its customers by expanding the range of beverage products in the region.
The transaction, fully financed from Almarai’s operating cash flows, remains subject to obtaining certain regulatory approvals, it added.
The Saudi company, which is looking at expansion, last month expanded its stake in Modern Food Industry (MFI), a Riyadh-based bakery products company.
Almarai made a Q1 net profit of 386 million Saudi riyals ($103 million), nearly flat compared to the year-earlier period. It said profit from the dairy and juice segment rose nearly 7 percent on higher sales in export markets.
(Writing by Brinda Darasha; editing by Seban Scaria)
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