Fonterra completes takeover of Saudi New Zealand Milk Products

New Zealand dairy co-operative Fonterra has completed the purchase of Saudi New Zealand Milk Products.
The company will buy the remaining 51% stake from its Saudi owner, which is based in Dammam.
Fonterra has agreed to pay NZ $45 million (EUR23.9m) to its former joint venture partner Saudia Dairy and Foodstuff company for the remaining stake in the dairy manufacturing facility.
Amr Farghal, managing director of Fonterra Middle East, Africa (MEA) and Commonwealth of Independent States (CIS) believes the acquisition represents a major step forward for Fonterra’s strategy in Saudi Arabia and the wider GCC region.
“We have great confidence in the stability and growth of the GCC economies, and see tremendous opportunity for our business in this region,” he notes.
“With rising demand for high quality dairy products, this acquisition secures our manufacturing capacity requirements for the future and helps us bring more world class ingredients and innovative new products to the Middle East region.”