16 hours ago
Saudi Arabia's Almarai to acquire Pure Beverages Industry Co. in $277m deal
RIYADH: Saudi dairy giant Almarai has signed an agreement to fully acquire Pure Beverages Industry Co. for SR1.04 billion ($277 million), aiming to diversify its offerings and enhance its market position.
Pure Beverages Industry Co. is a bottled drinking water producer in the Kingdom, known for its 'Ival' and 'Oska' brands. The company operates modern facilities and follows established production standards with a focus on quality and sustainability.
Mergers and acquisitions are on the rise in Saudi Arabia as the nation pursues economic diversification and privatization efforts under Vision 2030, a strategy that promotes foreign investment and supports local entrepreneurship.
In a statement, Almarai stated: 'This strategic acquisition is in line with Almarai's plan to diversify its beverage offerings and enhance its market position. We believe this deal will create added value for our shareholders.'
The transaction will be funded through Almarai's internal cash flows and is subject to fulfilling all contractual conditions and obtaining necessary regulatory approvals in the Kingdom.
Almarai also confirmed that there are no related parties involved in the transaction and pledged to disclose any material updates regarding the deal in the future.
Founded in 1977, Almarai is one of the largest food production and distribution companies in the Middle East, offering fresh dairy, yogurt and cheese, as well as juices, baked goods, poultry, and infant nutrition products. Listed on Tadawul since 2005, it remains one of the market's highest-valued companies.
According to the General Authority for Statistics, bottled water was the primary source of drinking water used by households in Saudi Arabia in 2023, with a reliance rate of 57.24 percent. This was followed by public network water at 23.56 percent and tanker water at 18.60 percent.
Given the heavy reliance on bottled water, the Saudi Water Authority plays a pivotal role in regulating and improving water sources — ensuring sustainability, safety, and accessibility across all supply methods.
The authority is the competent body in the Kingdom for all water system affairs at the supervisory and regulatory levels, providing strategic support to the sector through regulatory control and supervision.
