Savola Group Agrees to Sell Packaging Business to Takween Advanced Industries

By Bizclik Editor

Saudi Arabia-based Savola Group has entered a non-binding agreement to sell its packaging business to Takween Advanced Industries in move which sees the company realign its focus on core food and retail operations.

The proposal would see Takween acquire the entirety of Savola Packaging Co (SPC), subject to conditions and approvals. The value of the acquisition has not been disclosed.

According to Savola's 2013 annual report, the packaging unit's consolidated net profit last year fell to 69.5 million riyals from 100 million riyals a year earlier, even though sales increased 6.3 percent to 1.12 billion riyals.

The report cited conversion costs and competition as well as difficult export conditions across crisis-hit Europe and political tensions in many MENA countries.

However the company is posting strong performances this year. As a group Savola recorded a 32.4 percent jump in Q2 net profit to 513.3 million riyals, around $137 million.

Core food activities for Savola include the production of cooking oils and sugar among other staple foodstuffs and in May of last the company sold its Kazakhstan edible oil unit to a Russian firm for 107 million riyals.

The Savola Group was established in 1979, with the objective of manufacturing and marketing edible oil and vegetable ghee in Saudi Arabia. It is now one of the most successful and fastest growing multinational food groups in the Gulf and the Middle East Region, North African and Central Asian countries (MENACA).

Share

Featured Articles

Middle East GDP hike of 57% if more women join workforce

By tapping into the potential of next-generation female workers, the MENA region could unlock new economic opportunities, up to US$2 trillion, reports PwC

Dialight supplies LED solutions for industrial safety

Reliance on inefficient lighting technologies are not only harmful to the environment, but also increase injury risk and cost

Top 10: Tech, AI, cloud, cyber speakers at TECH LIVE LONDON

TECH LIVE LONDON events sees technology leaders from IBM, Oracle, Vodafone, JP Morgan, Accenture and the US Space Force among the inspirational speakers

Cyber LIVE adds Vodafone head of cyber Kawalec to line-up

Leadership & Strategy

Musk’s multibillion hostile Twitter takeover – the timeline

Leadership & Strategy

Sustainable moves businesses can make to win customers, IBM

Sustainability