Cargill and Agri-Business Firm Arasco to Take Foothold in Middle East Market
By Amanda Brodhagen, Farms.com
Cargill has said that it plans on developing new sweeteners and starches as part of a partnership in Saudi Arabia with another agri-business company – Arasco.
The joint venture is subject to regulatory approvals, however if the deal does go through, Cargill will own 20% and Arasco will have an 80% stake.
The move is a strategic one, as the Middle East is growing and is considered the highest growth area in the food and beverage industry worldwide.
The deal would acquire Arasco’s corn milling plant that’s located in Al Akarj with the goal to triple production to produce starch-based products aimed at countries in the Gulf.