Saudi’s NADEC agrees to acquire dairy competitor

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Updated 25 March 2018

Saudi’s NADEC agrees to acquire dairy competitor

DUBAI: Saudi Arabia’s National Agricultural Development Co. (NADEC) has agreed to buy Al Safi Danone Company (ASD) in a deal that will help boost its business in the dairy industry in the Kingdom and extend its geographic reach, it said on Sunday.
ASD, a producer of dairy and juice products, is a joint venture between Saudi Arabia’s Al Safi Group of Companies and French food company Danone. The value of the transaction was not disclosed.
Under the deal, NADEC will buy all the shares in ASD. In exchange, Al Safi shareholders will own 38.8 percent of NADEC.
The combination is an example of an M&A deal in a private sector that the government hopes will play an increasing role in diversifying the economy away from a reliance on oil revenues.
NADEC has a market capitalization of 3.2 billion riyals ($853 million), slightly smaller than that of Saudia Dairy & Foodstuff Company.
Both are dwarfed by Almarai,the Gulf’s largest dairy company, which has a market capitalization of 54.4 billion riyals.
NADEC is 20 percent owned by Saudi’s Public Investment Fund, with the rest publicy traded on the Saudi bourse.
NADEC said the move would help it develop a broader portfolio and enhance its regional reach outside the kingdom in the United Arab Emirates, Kuwait, Bahrain, Jordan and Lebanon, in addition to new countries such as Iraq and Oman. ($1 = 3.7498 riyals)


China aims for sustained and healthy economic development

Updated 30 October 2020

China aims for sustained and healthy economic development

  • Beijing to let market forces play decisive role in resources allocation, report says

BEIJING: China is targeting sustained and healthy economic development in the five years to 2025, with an emphasis on a higher quality of growth, the Xinhua news agency said on Thursday, citing the ruling Communist Party’s Central Committee.

President Xi Jinping and members of the Central Committee, the largest of the ruling party’s elite decision-making bodies, met behind closed doors from Monday to lay out the 14th five-year plan, a blueprint for economic and social development.

China’s external environment “is getting more complicated,” the agency said, adding, “There is a significant increase in instabilities and uncertainties.”

BACKGROUND

China aims to boost its gross domestic product (GDP) per person to the level of moderately developed countries by 2035, while GDP is due to top 100 trillion yuan ($15 trillion) in 2020.

However, the country’s development was still in a period of important strategic opportunities, despite new challenges, it said.

It added that China aims to boost its gross domestic product (GDP) per person to the level of moderately developed countries by 2035, while GDP is due to top 100 trillion yuan ($15 trillion) in 2020.

China will also deepen reforms and let market forces play a decisive role in resources allocation, the agency said.

China will promote a “dual circulation” model, make self-sufficiency in technology a strategic pillar for development, move to develop and urbanize regions, and combine efforts to expand domestic demand with supply-side reforms, it added.

The “dual circulation” strategy, first proposed by Xi in May, envisages that China’s next phase of development will depend mainly on “domestic circulation” or an internal cycle of production, distribution and consumption, backed by domestic technological innovation.