Almarai to acquire full stake in Pure Beverages for SAR 1 bn. PLUS: Acwa eyes Kahrabel assets in Kuwait

Almarai plans Pure Beverages buyout: Tadawul-listed F&B giant Almarai inked a share purchase agreement to acquire 100% of water bottling firm Pure Beverages Industry Company (PBIC) for SAR 1.04 bn, according to a disclosure to Tadawul published yesterday. The move will see Almarai buy out PBIC’s sole owner Ajlan & Bros Group.

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Where things currently at: Almarai is set to tap its own coffers to finance the takeover, which is pending regulatory approvals and the fulfillment of contractual conditions. Further developments will be announced at a later stage, the dairy company said.

The rationale: The acquisition plays into Almarai’s plans to grow its beverage portfolio, boost consumer offerings and maximize shareholder value as part of the firm’s growth strategy, the filing read. It also places the dairy giant among the Kingdom’s top four players in the fast-growing water bottling market alongside Nova, Safa Makkah Water and Aquafina, according to Aleqtisadiah analysts.

About PBIC: The Riyadh-based water bottling company runs production facilities in Riyadh, Jeddah, and Dammam, supplying a portfolio of packaged water products across the Kingdom, including the Ival and Oska Water brands.

Almarai has been on the move recently: Almarai closed a SAR 182 mn acquisition of Etmama Logistics in May of last year to accelerate its poultry business growth. This came two months after the firm unveiled plans to invest SAR 18 bn through 2028 to boost sales. The F&B player also said it is looking to expand in North Africa and Iraq as it looks to diversify outside the Kingdom.

IN OTHER M&A NEWS- Acwa aims to expand in Kuwait: Homegrown renewables giant Acwa Power submitted an application to Kuwait’s Competition Protection Agency to acquire full stakes in AZN Dutch Holdco No. 1 and AZN Dutch Holdco No. 2 and a 50% share in AZN O&M, all owned by Engie ’s electrical energy and water desalination subsidiary Kahrabel, the Kuwaiti watchdog said in a post on X.

ICYMI- Acwa Power used its own funds and debt to acquire Kahrabel's stakes in the Az-Zour North, Al Ezzel, Al Dur, and Al Hidd power plants in Kuwait and Bahrain last February. The agreement was worth SAR 2.6 bn and marked the company’s entry into Kuwait and expansion in Bahrain.