Riyadh, March 09 (QNA) – Saudi dairy firm, Almarai, announced that it has completed the purchase of 9,834 acres of farm land in Vicksburg, in the US state of Arizona, through its fully owned subsidiary Fondomonte, Arizona LLC, composed of 3,604 acres of freehold land, 3080 acres of agriculture lease hold land and 3,150 acres of grazing lease hold land.
Within the total land subject to this transaction, 4,430 acres are currently irrigated using the best modern methods such as dripping irrigation.
The total consideration for this transaction amounts to US$ 47.5 million, equivalent to SAR 178.1 million, and will be financed from the company’s own resources.
The transaction is part of Almarai’s continuous efforts to improve and secure its supply of the highest quality alfalfa hay from outside the Kingdom of Saudi Arabia to support its dairy business.
The deal is also in line with the Saudi government direction towards conserving local resources.
Almarai Co., the largest dairy company in Saudi Arabia by market value, operates dairy farms and processes food, in addition to marketing dairy products and fruit juices.
The firm began 2009 in bold fashion as it looks to consolidate its presence in the Kingdom and expand overseas. (QNA)
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QNA 0846 GMT 2014/03/09
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