The First Mills to Acquire 60% Stake in Al-Kanan Al-Arabiya Trading for SAR 48 Million
RIYADH – The First Mills announced yesterday a binding agreement to acquire a 60% stake in Al-Kanan Al-Arabiya Trading Company, a Saudi Arabian limited liability entity specializing in the trade adn distribution of animal fodder. The transaction is valued at SAR 48 million (approximately USD 12.8 million).
This acquisition marks a strategic move for The First Mills, aligning with its growth objectives to expand its presence in the animal feed sector, diversify revenue streams, and strengthen its market position both within Saudi arabia and possibly beyond. The deal, subject to regulatory approvals and fulfillment of agreed-upon conditions, will see ownership transferred upon completion.The company anticipates announcing the financial impact once the acquisition is finalized and confirmed there are no related parties involved in the transaction.
According to a statement released to the Saudi stock exchange (Tadawul), the agreement outlines the transfer of ownership contingent on securing necessary regulatory approvals and satisfying all conditions stipulated within the contract. The first Mills intends to leverage Al-Kanan Al-Arabiya’s existing distribution network to broaden its reach and enhance its offerings in the growing animal feed market.
Investors and industry analysts will be watching closely to see how this acquisition impacts The First Mills’ financial performance and its competitive standing in the regional fodder market. Further details regarding the completion timeline and integration plans are expected to be released following regulatory clearance.
