Diary and juice producer National Agricultural Development Company (NADEC) decided not to proceed plans to acquire 100% stake in Al Safi Danone Company (ASD) from Al Safi Holding Company and Danone Dairy Investments Indonesia (ASD Shareholders).
NADEC noted that the acquisition is no longer in the “best interest” of the company, according to a filing to the Saudi Stock Exchange (Tadawul) on Sunday.
An earlier purchase agreement for the planned acquisition was terminated on 21 June.
“This announcement marks the end of an extensive exercise and the board of NADEC is confident that its current strategic position in the market will enable it to continue to drive growth opportunities in favour of its shareholders, employees and customers, and is pleased to now focus on the execution of its standalone corporate strategy,” NADEC said.
In March 2018, NADEC signed an agreement to purchase Al Safi Danone in exchange for the issuance of new shares for shareholders of Safi Danone.