Vivartia: sets up joint venture for Middle East expansion

Athens / GR. (wib) Greek leading food group Vivartia S.A. said to «Thomson Financial», that it will form a joint company in Saudi Arabia for expansion into the production and distribution of bakery products in Middle East markets. Vivartia will control 25 percent of the company at a cost of 14 million Euro and the company intends to establish a production unit in Jedda. The majority of the company will be controlled by Western Bakeries with a 60 percent stake and Olayan Financing Company will have a 15 percent stake. Vivartia said that the new company will be active in Saudi Arabia, UAE, Kuwait, Oman, Bahrain and Qatar. The investment is expected to be completed near the end of 2008. Western Bakeries is a market leader in bakery products in the region and a unit of Saudi listed Almarai Company.