Fonterra Set To Buyout Saudi Partner

New Zealand dairy company Fonterra is reportedly in talks to acquire the outstanding 51% stake in its Saudi joint venture partner Saudi New Zealand Dairy Products Company from Saudi Dairy and Foodstuff Company (Sadafco). This follows Sadafco's declaration earlier in December 2009 that it may sell its stake in the venture. Having said earlier in 2009 that it expects the affluent Gulf Cooperation Council (GCC) region to take on even greater importance as a source of growth over the long-term, BMI believes the likely buyout would make strategic sense.

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