Almarai eyes stake increase in PepsiCo JV

Saudi dairy company Almarai is in discussions to increase its stake in International Dairy and Juice Limited (IDJ), a joint venture formed with American food and beverage company PepsiCo.

Almarai currently owns 48% in IDJ, while PepsiCo holds the remaining 52% stake.

In a statement to Saudi bourse, Almarai said that both the companies are reviewing their strategic partnership to strengthen the performance of the joint venture.

"It is anticipated that an announcement could be made during the course of March 2012, although discussions are still ongoing," Almarai added.

The joint venture was formed in 2009 to focus on opportunities in dairy and juice segments in Southeast Asia, Africa and the Middle East, excluding the GCC countries.

Over the past year, Almarai, which is the Gulf’s biggest dairy firm by market value, has been seeking to expand its presence outside the Gulf.

In December, the company acquired Argentinian farm operator Fondomonte for SAR312m ($83.18m) to help secure feed sources for its dairy herd and chicken operations.

In June 2011, Almarai announced that it plans to invest $1.1bn in the poultry sector, financed through the company’s cash flow.