Saudi Almarai Surges to 10-Month High on Fondomonte Acquisition

Almarai Co. (ALMARAI) rallied to a 10-month high after Saudi Arabia’s largest food producer by market value acquired Fondomonte SA for 312 million riyals ($83 million).

The shares climbed 3.4 percent to 100 riyals, the highest intraday level since Feb. 23, at 1:08 p.m. in Riyadh. The stock is down 11 percent this year.

Riyadh-based Almarai financed the acquisition of Fondomonte, which owns and operates three farms in Argentina, with its cashflow and Islamic banking facilities, the company said.

Almarai is expanding its supply chain and access to feed for its dairy herd and poultry business “in line with the Saudi government’s trend to secure supplies and preserve local resources,” the company said.

To contact the reporter on this story: Zahra Hankir in Dubai at

To contact the editor responsible for this story: Claudia Maedler at

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.