Saudi Dairy Firm Nadec to Buy Danone Unit Via Capital Raise

Saudi Arabia’s National Agricultural Development Co., part owned by the sovereign wealth fund, will acquire Danone SA’s venture in the country, creating one of the kingdom’s largest dairy producers.

Nadec, as the company is known, will fund the acquisition of privately held Al Safi Danone through a capital increase of 536 million riyals ($143 million), it said in a statement to the Saudi stock market Sunday. Once the deal is completed, existing Nadec shareholders will own 61.25 percent of the company, and Al Safi shareholders will hold 38.75 percent.