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Saudi Arabia’s Almarai Company buys land in Arizona

The Tadawul All Share Index gained by 1.20 per cent to close at 9,350.60 points on Sunday, March 9. Market bellwether SABIC added 0.65 per cent, closing at SAR115.50. Food and beverages producer Almarai gained by 1.20 per cent to reach SAR63.50. Earlier in the day, Almarai revealed that it has completed the purchase of 9,834 acres of farm land in Vicksburg, Arizona, on March 6 through its fully owned subsidiary Fondomonte Arizona LLC, which comprises 3,604 acres of freehold land, 3080 acres of agriculture leasehold land and 3,150 acres of grazing leasehold land. “Within the total land subject to this transaction, 4,430 acres of ground is currently irrigated using modern methods, such as dripping irrigation,” reads a company statement. The total consideration for this transaction amounts to $47.5 million (equivalent to SAR178.1m) and will be financed from the company’s own resources. The resulting increase in property, plant and equipment accounts will be reflected within the interim consolidated financial statements for the first quarter of 2014.

*Please note that that the seller is not a related part

Gérard Al-Fil