Home World Middle East Almarai May Increase Pepsi JV Stake The Saudi dairy company is currently in talks Pepsico to up its 48 per cent stake in IDJ, their joint venture firm. by Reuters February 28, 2012 Saudi Arabia’s Almarai is in talks with PepsiCo Inc to increase its stake in a joint venture formed with the US soft drink giant in 2009, the Gulf dairy firm said on Tuesday. Almarai, the Gulf’s biggest dairy firm by market value, currently holds 48-per cent in International Dairy & Juice Ltd (IDJ), with PepsiCo owning the remaining 52-per cent stake. The IDJ joint venture was formed to target growth opportunities in the dairy and juice sector in Southeast Asia, Africa and the Middle East, excluding the Gulf region. “Almarai is looking at possibly slightly increasing their ownership of IDJ,” the company said in a bourse statement. “It is anticipated that an announcement could be made during the course of March 2012, although discussions are still ongoing.” Almarai, currently roadshowing for a riyal-denominated Islamic bond, has been keen to expand its footprint outside its core presence in the Gulf. In December, the company acquired Fondomonte S.A which owns and operates farms in Argentina, to secure feed for its dairy herd and poultry businesses. It plans to invest $1.1 billion in the poultry sector, it said in June. Interest in Saudi Arabia’s consumer sector is growing among international investors as the country’s population rises beyond 27 million, most of which are under the age of 30. Coca-Cola Co invested $980 million in Saudi Arabia-based beverage firm Aujan Industries in December. The transaction is expected to close in the first half of this year. Meanwhile, US private equity firm Carlyle Group acquired a 42-per cent stake in Alamar Foods, the master franchise operator for Domino’s Pizza and Wendy’s restaurants in the Middle East and North Africa. Tags Breaking News World 0 Comments Share Tweet Share Share You might also like Global downturn risks becoming prolonged recession – WEF How should regional businesses effectively navigate their workforce through the Covid-19 pandemic Warmest oceans on record add to hurricanes, wildfires risks Is coronavirus the newest threat to cybersecurity in the GCC?