Fonterra, the world largest dairy processor, said it has completed the acquisition of Dammam-based Saudi New Zealand Milk Products by purchasing the remaining 51 per cent stake from its Saudi owner.

New Zealand-based Fonterra, the owner of popular brands such as Anchor, Anlene and Chesdale, agreed to pay NZD45 million ($32 million) to its former joint-venture partner Saudia Dairy and Foodstuff Company (Sadafco) for the remaining stake in the dairy manufacturing facility.

Amr Farghal, managing director of Fonterra Middle East, Africa (MEA) and Commonwealth of Independent States (CIS) said the acquisition was a major step forward for Fonterra’s strategy in Saudi Arabia and the wider GCC region.

“We have great confidence in the stability and growth of the GCC economies, and see tremendous opportunity for our business in this region," Farghal noted.

“With rising demand for high quality dairy products, this acquisition secures our manufacturing capacity requirements for the future and helps us bring more world class ingredients and innovative new products to the Middle East region,” he added.-TradeArabia News Service