Abu Dhabi's ADQ to buy 50% stake in agri-food specialist Al Dahra Holding
The deal, subject to regulatory approvals, will further expand the company's portfolio of agriculture and food sector investments
ADQ, one of the region’s largest holding companies, has agreed to acquire a 50 per cent stake in Al Dahra Holding, an Abu Dhabi-based multinational animal feed and essential food commodities specialist firm, as it looks to expand its portfolio of food and agriculture businesses.
The move is part of state-controlled ADQ’s strategy to support the country's agri-foods sector ecosystem and boost sustainable and diversified food supply in the UAE, it said in a statement on Wednesday. The company did not provide financial details of the planned transaction.
“Food and agribusiness is of importance to ADQ’s strategy because it is high growth and important for Abu Dhabi’s socio-economic agenda,” Mohammed Alsuwaidi, chief executive of ADQ, said. “Al Dahra will complement our existing efforts to extend ADQ’s reach in food production and distribution.”
Since setting up in 1995, Al Dahra has grown into a global food and animal feed company and "is a pillar of the UAE’s food security mandate", Mr Alsuwaidi added. With our investment, Al Dahra will be well positioned to further expand its reach and footprint."
The acquisition is subject to certain regulatory approvals and will expand ADQ’s portfolio of agriculture and food sector investments, which also includes Agthia, Al Foah and Silal. Al Dahra specialises in the cultivation, production and trading of animal feed and essential food commodities and end-to-end supply chain management.
With a workforce of 5,000 employees, Al Dahra has a presence in more than 20 countries and operates a land bank of 350,000 acres of irrigated land. Over the years, the company has made significant investments in logistics, to secure inland transportation and sea freight operations.
It also owns and operates 15 forage processing and baling facilities globally and cultivates different types of fresh produce, including a wide range of fruits and vegetables and grains with infrastructure to facilitate grains’ trading.
The company owns shares in three flour mills in Greece and Bulgaria, an olive oil production plant in Morocco with an annual production capacity of 10,000 tonnes, and dairy farms in Serbia and the UAE.
ADQ, formally known as Abu Dhabi Developmental Holding Company, has a portfolio of conglomerates, spanning key sectors of Abu Dhabi’s economy, including utilities, tourism and hospitality, aviation, transportation, logistics, industrial, real estate, media, healthcare, agri-foods and financial services.
Its portfolio of companies include Abu Dhabi Power Corporation, Abu Dhabi Airports, Abu Dhabi Ports, Etihad Rail, Abu Dhabi Health Services (Seha), insurer Daman, media companies Abu Dhabi Media and twofour54 and Abu Dhabi National Exhibitions Company, among others.
In April, ADQ bought the 30 per cent stake in National Petroleum Construction Company it did not already own from minority shareholder Consolidated Contractors International Company for an undisclosed sum.
NPCC, headquartered in Abu Dhabi is an engineering, procurement and construction company involved in a number of oil and gas projects in the GCC, South Asia and South East Asia.
Updated: May 13, 2020 05:34 PM