Saudi Arabia's Almarai Co hit a 10-month high after saying it had acquired Argentina farm operator Fondomonte.
The deal will help the Gulf's biggest dairy firm by market value to secure feed for its dairy herd and poultry businesses. Shares in Almarai gain 2.8 percent to reach their highest close since Feb 21.
"Almarai's acquisition of this feed producer is a move upstream, which will allow them to both secure feed supplies and boost profit margins in the future," said Sleiman Aboulhosn, assistant fund manager at Dubai-based Al Masah Capital. "The end result may be a noticeable improvement in the company's overall profitability."
The deal will help the Gulf's biggest dairy firm by market value to secure feed for its dairy herd and poultry businesses. Shares in Almarai gain 2.8 percent to reach their highest close since Feb 21.
"Almarai's acquisition of this feed producer is a move upstream, which will allow them to both secure feed supplies and boost profit margins in the future," said Sleiman Aboulhosn, assistant fund manager at Dubai-based Al Masah Capital. "The end result may be a noticeable improvement in the company's overall profitability."
No comments:
Post a Comment