Almarai’s planned acquisition of Hammoudeh Food Industries collapses

SAUDI ARABIA – A major acquisition deal in the Middle East’s food and beverage sector has fallen apart, with Saudi Arabian giant Almarai announcing that its planned purchase of Jordan-based Hammoudeh Food Industries will not proceed. 

The announcement came in a brief statement released on March 17 by Almarai on the Saudi stock exchange Tadawul, ending months of speculation about the high-profile transaction.

According to the statement, Almarai attributed the collapse of the deal to factors beyond its control. 

“We announce that our planned acquisition of Hammoudeh Food Industries in Jordan was not completed due to the seller’s inability to meet certain conditions required to complete the transaction,” the company said.

 Despite the setback, Almarai expressed optimism about its future plans, noting that it remains committed to exploring expansion opportunities across the region to strengthen its operations and reach more consumers.

The deal, first revealed in October last year, was set to see Almarai acquire Hammoudeh Food Industries for SR263 million, equivalent to US$70.1 million at the time. 

The acquisition was to be carried out through Almarai’s subsidiary, Teeba Investment for Developed Food Processing Company. 

Hammoudeh, a well-known name in Jordan, produces a variety of goods including dairy, juices, poultry, and eggs, and has been a key player in the Jordanian market for over 50 years. 

Almarai, a publicly listed firm founded in 1976 by Prince Sultan bin Mohammed bin Saud Al Kabeer, operates across dairy, poultry, bakery, infant nutrition, and juice sectors.

Reported by Almarai at the time of the initial announcement, the acquisition was seen as a strategic move to bolster its presence in Jordan. 

“This acquisition strengthens Almarai’s position in Jordan and aligns with the company’s broader growth strategy to maintain sustainable growth in core markets and geographies,” the company had stated. 

It also highlighted that the deal would improve its ability to serve customers, expand its product range, and boost profitability through greater operational scale.

A report by industry analysts had suggested the move could enhance Almarai’s dominance in the region’s competitive food and beverage market. 

However, with the transaction now abandoned, questions remain about what specific conditions Hammoudeh failed to meet. Neither company has provided further details on the matter.

Almarai, headquartered in Riyadh, continues to be a leading name in the Gulf, and its leadership has signaled that it will keep seeking ways to grow. 

“We remain open to future opportunities that support our strategic goals,” a company spokesperson said.