Saudi Arabia’s state grain buyer will begin the next phase of its sale of flour mills this week, according to the Saudi Grains Organisation (SAGO).
The phase will see pre-qualified bidders perform due diligence and finally submit their financial bids.
SAGO has not identified the pre-qualified bidders from the initial phase of the process last years.
Reuters, however, has reported that global agribusiness firms Archie Daniels Midland Co. and Bunge Ltd. are interested in SAGO’s sale of flour mills.
Since abandoning plans to become agriculturally self-sufficient in 2008, the kingdom has become increasingly dependent on grain imports.
“It is worth noting that the four flour milling companies [in Saudi Arabia] represent an attractive opportunity for the private sector to invest in one of the largest flour markets in the Middle East and North Africa with high and appealing growth rates,” SAGO said in a statement.
The statement added that “the flour milling sector represents one of the targeted sectors for privatisation under the kingdom of Saudi Arabia’s Vision 2030 realisation plan.”
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