UAE – Agthia Group, the UAE-based food and beverages major, has announced the successful completion of its merger with Al Foah, the world’s largest date processing and packaging company.
The merger with Abu Dhabi-based Al Foah has catapulted Agthia into becoming a domestic market leader in four essential food and beverage categories namely; water, dates, flour, and animal feed, it said in a statement.
As a more robust, diversified, and consumer-centric food and beverage player, Agthia added that it will have an “even stronger platform” to compete across the MENA region and beyond.
“With the successful close of this transaction, we have fast-tracked our ambitions to become amongst the top 10 F&B companies in the MENA region,” Alan Smith, CEO of Agthia Group, said.
According to a report by Arabian business, the transaction –saw General Holding Corporation (Senaat) transfer Al Foah’s business, excluding its organic date farm in Al Ain, to Agthia.
The Transfer according to the Arabian news outlet was made in exchange for 120 million new shares through the issuance of a convertible instrument.
As a result, Senaat now owns 59.17 percent of the entire issued share capital of Agthia, up from the 51 percent it owned before the deal.
Senaat is part of ADQ, one of the region’s largest holding companies with a broad portfolio of major enterprises spanning key sectors of Abu Dhabi’s economy.
Commenting on the merger, Khalifa Sultan Al Suwaidi, chairman, Agthia Group and chief investment officer, ADQ, said: “The successful consolidation of Al Foah’s business has created a true F&B regional powerhouse and an immediate UAE champion in the exciting date market.”
“Agthia has a winning formula which enables us to take advantage of opportunities such as the Al Foah transaction,” added Sultan Al Suwaidi.
The chairman of the Agthia Group further noted that there existed a clear roadmap for growth and diversification of geographies and products which was underpinned by a robust balance sheet.
“We will continue to seek organic and inorganic growth opportunities to support our ambitions and to further strengthen the UAE’s food and beverage sector,” Sultan Al Suwaidi said.
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