NADEC signs MoU with Del Monte to establish JV

National Agricultural Development Co. (NADEC) signed, on Nov. 9, a memorandum of understanding (MoU) with Del Monte Saudi Arabia Factory Company Ltd. to establish a strategic joint venture (JV) company specializing in fresh products such as fruits, vegetables, fresh juices, potato processing, and their distribution in Saudi Arabia.

In a statement to Tadawul, NADEC pointed out that the MoU specified ownership percentages for each party, where NADEC's stake will be 37.5% of the new company's capital.

Moreover, it set a general framework for establishing the company, with a number of terms and conditions that regulate the partnership.

It aims to establish manufacturing facilities to supply fresh products, process French fries, fresh juice, canned fruits and vegetables, processed fruits and vegetables, frozen fruits and vegetables and other vegetable products to diversify the company’s products in Saudi Arabia.

The financial impact of the deal will be determined later, NADEC noted, stressing that any fundamental developments in this regard will be announced in due course.

Del Monte Saudi Arabia Factory is a limited liability company owned by the international company Fresh Del Monte, which owns the largest share of the capital.

Being one of the vertically integrated companies, it is a global pioneer in agriculture, as well as the production, marketing and distribution of fresh chopped and full fruits and vegetables.

Abdul Qader Al Muhaidib and Sons Co. is also a partner in the joint venture, the statement added.

Source : Argaam