Dairy producer NADEC scraps deal to buy Al Safi Danone

Dairy and juice producer National Agricultural Development Co. (NADEC) has scrapped plans to acquire Al Safi Danone (ASD), adding that the acquisition is no longer in the “best interest” of the company.

An earlier purchase agreement for the planned acquisition was terminated on June 21, the company said in a bourse statement on Sunday.

“The board of NADEC is confident that its current strategic position in the market will enable it to continue to drive growth opportunities in favor of its shareholders, employees and customers, and is pleased to now focus on the execution of its standalone corporate strategy,” the statement added.

NADEC had inked an agreement in March 2018 to take over Al Safi Danone in exchange for issuance of new shares for shareholders of Safi Danone.