Tanmiah Food signs MoU with Brazil's Vibra to boost food security in Saudi Arabia

Logo of Tanmiah Food Co.

Tanmiah Food Co. signed a memorandum of understanding (MoU) with Brazil’s Vibra Agroindustrial SA (Vibra), one of the world's leading poultry producers and exporters, with an aim to establish a joint venture (JV). 

In a statement to Tadawul, Tanmiah Food pointed out that a shareholders agreement is expected to be concluded before the end of 2024, noting that the equally owned project includes joint packaging of both brands’ products, starting in Saudi Arabia with expansion plans to cover the Middle East and North Africa (MENA) region.

This comes in line with Tanmiah Food's commitment to enhancing food security and self-sufficiency across Saudi Arabia, the statement said, noting that the MoU stipulates for a joint venture headquartered in the Kingdom. 

The JV will also evaluate the possibility of establishing a primary processing or further processing facility in Saudi Arabia.

The establishment of the JV remains subject to necessary regulatory approvals, including the clearance by the Saudi General Authority for Competition, and other applicable jurisdictions and authorizations.

Tyson International Holding Co., which owns a stake in Vibra, is a related party. 

Tyson is a partner in a joint venture with Tanmiah Food via a 15% stake in the latter’s subsidiary, Agriculture Development Co. (ADC), and a 60% stake in its subsidiary, Supreme Foods Processing Co.

The financial impact of the deal will be determined later, the statement added, noting that any material developments in this regard will be disclosed in due course.