Saudi Arabia's Savola Group said on Tuesday it was setting up an edible oils and sugar firm with Al-Muhaidab Group.

It did not mention the capital of Savola Foods in a statement on the bourse website.

Savola would own 80 per cent and Al-Muhaidab would get 20 per cent.

As part of the deal, Savola will take full control of Savola Industrial Investments Co, a second joint venture between the two companies in which Muhaidab has a 36.5 per cent stake, chief executive Sami Baroum said in the statement.

Savola said on Monday it planned to spend at least $100 million to buy stakes in agribusiness firms in Ukraine, Brazil or Egypt to secure sugar and edible oil supply.-Reuters