Saudi's Nadec signs MoU to form consortium to bid for a flour mill

The MoU will also define the basis on which the parties will negotiate the joint venture agreement

  
Image used for illustrative purpose. Raoul Becker, manager of the "Moulin de Hurtigheim" flour mill, checks the grinding of bread wheat at his mill in Hurtigheim near Strasbourg, France, July 26, 2016.

Image used for illustrative purpose. Raoul Becker, manager of the "Moulin de Hurtigheim" flour mill, checks the grinding of bread wheat at his mill in Hurtigheim near Strasbourg, France, July 26, 2016.

REUTERS/Vincent Kessler

Saudi Arabia-based National Agricultural Development Co (Nadec) has signed a memorandum of understanding (MoU) to form a consortium to jointly bid to acquire one of the two flour mills that will be offered for privatisation by the  National Center for Privatization and PPP (NCP) and the Saudi Grains Organization (SAGO).

According to a statement to the Tadawul on Tuesday, besides Nadec, the consortium will include, food and agri-business company, Olam International, Al Rajhi International for Investment and Abdulaziz Alajlan & Sons.

The MoU will also define the basis on which the parties will negotiate the joint venture agreement and regulate the relationship between consortium partners in a holding company to be set up in the kingdom, if they will the bid to acquire the mill.

SAGO, one of the world’s largest wheat and barley importers, is the kingdom’s monopoly state grain buyer. The kingdom approved a plan sell its four flour mills as part of the privatization drive initiated under the Vision 2030.  

(Reporting by Brinda Darasha; editing by Daniel Luiz)

brinda.darasha@refinitiv.com 

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