:. Food Industry News

Categories: Mergers and Acquisitions

Saudi Savola Plans Edible Oil Buyouts - Report

Source: Reuters
02/06/2008

Riyadh, June 1 - Saudi Savola Group plans to buy edible oil companies, part of a drive to increase its global market share in the industry to 10 percent in five years from 2 percent now, a Saudi newspaper reported on Sunday.

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Savola wants to take advantage of the departure from the market of producers such as Unilever, Savola Chief Executive Officer Sami Baroum said, according to the newspaper.

Last year, Savola produced 1.7 million tonnes of branded cooking oil, Baroum said, according to the newspaper. Baroum was not immediately available for comment when Reuters called.

Savola also plans to buy farmlands in countries such as Sudan and Egypt to cultivate oilseeds, including sunflower and corn, Arab News said.

Baroum told Reuters last month the firm plans to spend at least $100 million buying stakes in agribusiness in either Ukraine, Brazil or Egypt to secure sugar and edible oil supplies.

Shares of Savola are up 2.08 percent this year, outperforming Saudi Arabia's main stock index, which is down more than 13 percent.



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