Savola Finalises Rival Retail Buy

Diversified Saudi conglomerate Savola has further strengthened its market leadership of the kingdom's mass grocery retail (MGR) industry after completing the acquisition of the Geant supermarket banner owned by Saudi-based Fawaz Alhokair Group (FAG). Worth a reported SAR440mn (US$117.3mn), 11 of Geant's store will be absorbed by Savola's grocery retail arm Panda and will be financed through a cash and equity arrangement. Taking into account an expected 25.4% increase in industry wide supermarket sales to SAR6.5bn over BMI's forecast period to 2014, we expect Savola's latest acquisition to usefully complement Panda's already strong kingdom-wide supermarket footprint (it operates about 65

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