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)
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