Saudi Al Marai Company, the biggest dairy producer in GCC area, announced that its subsidiary in USA will purchase an agrarian land in Blythe, California. The company mentioned that the deal will be financed by the company’s own resources.
The company cleared that the 119.3 million SAR deal for purchasing the land sprawling on 1590 acres was signed to improve the company’s provision of high-quality fodder. The deal is considered an assurance on the followed strategy aimed at keeping up with the government’s approaches in this issue.
Besides, the company mentioned that the deal includes developing the land’s infrastructure by improving its irrigation system, logistic services, and transportation equipment needed to supply the fodder from USA to Saudi Arabia.
It’s reasonable to assume that the signed deal will have a positive impact on the interim financial statements for the first quarter of 2016 by adding to assets, equipment, and machines section.
It’s worth mentioning that Al Marai Company was established in 1976 to operate in producing fresh dairy and juices in addition to marketing them in Saudi Arabia and GCC states. Savola, the largest food production company in GCC, is considered the biggest shareholder of the company as it acquires around 36.6% of Al Marai shares.