NADEC COMPLETES 100% ACQUISITION OF AL RAIE NATIONAL LIVESTOCK COMPANY AFTER MEETING ALL FUND CONDITIONS

Riyadh, Saudi Arabia — The National Agricultural Development Company (NADEC) has completed its full acquisition of Al Raie National Livestock Company, bringing its ownership stake to 100%. The transaction closes a deal first announced on May 3, 2026, when NADEC signed a Share Purchase Agreement with Anaam Saudi for Trading Company, a wholly owned subsidiary of Al Muhaidib Group, to buy its entire stake in the joint venture.

NADEC has now satisfied all conditions set by the Agricultural Development Fund for approving the ownership restructuring. The company updated Al Raie’s Articles of Association and Commercial Registration to reflect the new ownership structure. It also completed all required mortgage and guarantee procedures demanded by the Fund.

Deal Details

The acquisition of Al Raie National Livestock Company represents a full consolidation of the joint venture under NADEC’s ownership. Before the deal closed, NADEC shared ownership of Al Raie with Anaam Saudi for Trading Company. The seller, Anaam Saudi, operates as a wholly owned subsidiary of Al Muhaidib Group, one of Saudi Arabia’s established conglomerates.

To satisfy the Agricultural Development Fund’s requirements, NADEC took several concrete steps:

• Mortgaged additional land areas at one of its properties in Wadi Al-Dawasir
• Provided a required corporate guarantee aligned with the new ownership structure
• Updated Al Raie’s Articles of Association to show 100% NADEC ownership
• Completed the Commercial Registration update to reflect the restructured entity

The Agricultural Development Fund formally approved the restructuring before NADEC finalized these steps. No delays in the timeline were reported, and no additional costs beyond those originally associated with the transaction were disclosed.

Why It Matters

• Full ownership gives NADEC direct operational control over Al Raie National Livestock Company, removing any need to coordinate decisions with a joint venture partner
• The Wadi Al-Dawasir land mortgage signals NADEC’s use of its real asset base to back expansion in the livestock sector
• Completing Agricultural Development Fund requirements confirms the deal meets Saudi Arabia’s agricultural financing standards
• The transaction strengthens NADEC’s vertical integration across the agricultural value chain

What This Means for Investors

• NADEC now consolidates 100% of Al Raie’s financials, which will affect reported revenues and liabilities going forward
• The additional land mortgage in Wadi Al-Dawasir adds a secured obligation against NADEC’s asset base — investors should monitor the debt structure
• Full ownership removes minority partner complexity, but concentrates all operational and financial risk from Al Raie directly on NADEC
• The deal’s completion without delays or additional costs is a positive signal for management’s execution capacity on M&A transactions

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THE SAUDI STANDARD’S VIEW: NADEC’S FULL CONSOLIDATION OF AL RAIE SIGNALS A BOLDER LIVESTOCK STRATEGY

NADEC’s completion of its 100% acquisition of Al Raie National Livestock Company is more than a corporate housekeeping exercise. It represents a deliberate move to deepen vertical integration in the agricultural sector at a time when Saudi Arabia is actively restructuring its food production and supply chain resilience. For investors tracking the agribusiness space on Tadawul, this transaction warrants careful examination of both the strategic upside and the balance sheet implications it carries.

• VERTICAL INTEGRATION AS A COMPETITIVE MOAT

By consolidating full ownership of Al Raie, NADEC eliminates the operational friction inherent in shared governance and positions itself as a more unified player across the livestock value chain. Direct control allows faster strategic decisions on production, sourcing, and capital allocation without requiring partner alignment. In an industry where margins depend on supply chain efficiency, this structural clarity is a tangible competitive advantage.

• ASSET-BACKED EXPANSION CARRIES BALANCE SHEET WEIGHT

The decision to mortgage land holdings in Wadi Al-Dawasir to satisfy the Agricultural Development Fund’s conditions demonstrates that NADEC is leveraging its real asset base to finance growth rather than diluting shareholders through equity issuance. While this preserves ownership structure, it does introduce a secured liability layer that investors should weigh against future cash flow generation from Al Raie’s operations. The debt-to-asset ratio warrants close monitoring as full consolidation flows through NADEC’s financial statements.

• FULL FINANCIAL CONSOLIDATION RESHAPES THE INVESTMENT THESIS

With 100% ownership now in place, Al Raie’s revenues, costs, and liabilities will be fully absorbed into NADEC’s consolidated accounts, altering the financial profile that analysts and fund managers have historically modeled. This represents both an opportunity and a risk adjustment — upside if Al Raie contributes meaningfully to top-line growth, and direct exposure if the subsidiary underperforms. Investors should revisit their earnings models to account for this structural shift in reported financials.

• CLEAN EXECUTION BUILDS M&A CREDIBILITY

The transaction closed on schedule, with all regulatory and fund conditions met without reported delays or cost overruns, reflecting a disciplined approach to deal execution at the management level. For a market where corporate governance and execution quality increasingly influence institutional investor confidence, this track record matters. A clean close also signals that NADEC’s management is capable of navigating complex regulatory frameworks — an attribute that gains value if the company pursues further consolidation within the agricultural sector.

This acquisition fits squarely within Vision 2030’s strategic imperative to reduce Saudi Arabia’s dependence on food imports and build a resilient, domestically anchored agricultural industry. NADEC’s move to consolidate full control over a livestock enterprise, backed by state-aligned agricultural financing, reflects the kind of private-sector ownership deepening that the Kingdom’s economic transformation program is designed to encourage. Investors with a long-term horizon on Saudi food security plays should view this transaction as a structural building block rather than a one-time corporate event.