Al Othaim's planned 51% acquisition of Manuel Markets to strengthen foothold: CEO

Muaffaq Mubarah, CEO of Abdullah Al Othaim Markets Co.

Abdullah Al Othaim Markets Co.'s planned acquisition of a 51% stake in Manuel Markets would strengthen its foothold in Saudi Arabia, particularly in Western Province — which is deemed a key growth market in the local retail sector, CEO Muaffaq Mubarah told Argaam.

For more news and details on M&As

Mubarak explained that Manuel Markets enables the company to reach a broader customer base, including those seeking premium and imported products.

Mubarah clarified that this move does not mean the company is solely focusing on the luxury retail segment but rather aims to provide diverse options that cater to various customer needs.

The CEO further stated that the memorandum of understanding (MoU) between Al Othaim and Manuel Markets includes Al Othaim acquiring a 51% stake in Ebdaa Al Qasr Marketing, the company operating Manuel Markets, along with assuming management responsibilities.

Regarding financing, Mubarah emphasized that Al Othaim maintains strong financial statements and positive cash flows and is evaluating all available options, including self-financing, borrowing, or a combination of both.

He added that the expected merger will enhance operational efficiency by integrating supply chains and leveraging Al Othaim’s strong logistics infrastructure, which will positively impact both companies’ financial and operational performance.

On the matter of debt restructuring following the deal, Mubarah confirmed that Al Othaim's financial position is highly stable, with total loans standing at approximately SAR 330 million of the latest financial statements—equivalent to just two weeks of sales. He affirmed that there are no plans to restructure existing debt.

The company is currently working on completing the necessary regulatory procedures to finalize the deal with the financial and legal due diligence process expected to take around 90 days.

Regarding the company’s performance in Egypt, the CEO noted that Al Othaim's branches there continue to achieve sustainable growth. He emphasized the company’s commitment to investing in improving customer experience and expanding its branch network.

He highlighted that Egypt's retail sector offers multiple opportunities for expansion and that Al Othaim is working to increase its market share through competitive offerings and enhanced services aligned with consumer expectations.

According to data available on Argaam, Al Othaim signed on Feb. 27 an MoU with Abdulilah Ahmed Al-Darwish and Al-Musbah Global Trading Co. to acquire 51% of Ebdaa Al Qasr Marketing LLC.

Abdaa Al Qasr is a consumer and food products retailer, operating through 11 Manuel-branded branches in Jeddah and Riyadh

According to Argaam data, Abdullah Al Othaim Markets announced last Thursday the signing of a non-binding memorandum of understanding with Abdullah Al-Darwish and Al-Misbah International Trading Company to acquire a 51 percent stake in Ibdaat Al Qasr for Marketing, a limited liability company.

Ibdaat Al Qasr operates in the food and consumer goods retail sector and manages 11 branches under the Manuel Markets brand across Jeddah and Riyadh.