Almarai Co. — M&A Activity 2009

Feb 14, 2009

Almarai and PEPSICO form Joint Venture to Explore Dairy and Juice Opportunities

2280 · 14/02/2009 09:06:14 · Announcement #14561 · View on Saudi Exchange

Almarai and PEPSICO form Joint Venture to Explore Dairy and Juice Opportunities

Almarai Company, a leading food company in the Middle East, and PepsiCo, one of the world?s largest food and beverage companies, have announced the creation of a joint venture to explore new business opportunities in dairy and juice products.

The joint venture, called International Dairy & Juice Limited, which will be held 52% by PepsiCo and 48% by Almarai, will focus initially on opportunities in Southeast Asia, Africa and the Middle East. The Gulf Cooperation Council countries, where Almarai already has a very strong presence, are excluded.

The joint venture will identify and develop growth opportunities for a range of high-quality dairy and juice products. The venture will draw on the two partners? complementary brands and capabilities ? benefiting from Almarai?s in-depth knowledge of the dairy industry and PepsiCo?s marketing capabilities and experience as a world leader in juice.

A management team, sourced from both parent companies, will identify investment opportunities and, where appropriate, make recommendations to the Board of the joint venture, which will be composed of representatives of both companies. All investments will be determined on a case by case basis. Will keep you informed of developments

The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.