Riyadh – Mubasher: Four Saudi companies, operating the field of aquaculture, have signed a merger agreement, under the patronage of the Ministry of Environment, Water, and Agriculture.
Jazan Energy and Development Company (Jazadco), Tabuk Fisheries Company, Aquaculture Sharq Farms (ASF) Company, and Tharawat Seas, will merge and create a new company under the name “Advanced Aquaculture Company” with a total market value of SAR 500 million ($133.3 million).
The merger will contribute to the ministry's strategy to raise aquaculture productivity, meet the Kingdom's food security goals, under the Saudi Vision 2030, said Abdulrahman Al Fadley, Saudi Minister of Environment, Water, and Agriculture.
Aquaculture Sharq Farms Company is expected to produce about 60,000 metric tons in the first stage, then double its production capacity to 120,000 metric tons in the second stage, reaching 300,000 tons by 2035.
A second phase of the sector development will witness merging multiple local and international companies, the minister further noted.
The four companies recently signed a memorandum of understanding (MoU) to study the merger.
Under the MoU, Jazadco, a company listed on the Saudi Stock Exchange (Tadawul), will control a 45% stake in the new company.
