Tyson Foods (NYSE:TSN) Expands in MidEast With Deal for Saudi Arabia’s Tanmiah - Bloomberg
Tyson, the biggest US meat company by sales, is competing with international rivals such as Brazil’s JBS SA for market share amid swelling protein consumption around the world. Chicken demand, in particular, is growing much more dramatically than that of beef or pork, according to US government data, and chicken is forecast to account for more than 40% of worldwide meat consumption by the end of the decade.
Tyson agreed to acquire stakes in Tanmiah subsidiaries that operate chicken hatcheries, feed mills and poultry-processing plants serving Saudi Arabia, Kuwait, Bahrain, UAE, Oman, Lebanon and Jordan, according to a statement Wednesday.
Tyson will pay about $70 million for the stakes in Tanmiah’s Agricultural Development Co. and Supreme Foods Processing Co., according to a separate statement by the Saudi company.
The deal will enable Tyson to “unlock long-term opportunities in the growing Halal food market,” Tan Sun, president of Tyson Foods in Asia-Pacific, said in the statement.
Tanmiah shares rose as much as 8.9% in Riyadh. Tyson stock was little changed.
The announcement comes ahead of US President Joe Biden’s planned visit to Saudi Arabia next week. Biden has been critical of major food producers that he blames for contributing to the worst food inflation since the 1980s.
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