Almarai Co. 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.