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Nofoth Food Products Co. has received non-objection approval from the General Authority for Competition (GAC) regarding its proposed economic concentration to acquire a 65% stake in Plenty Food Co. LLC. The regulatory approval marks a major milestone for the transaction, satisfying one of the critical conditions precedent stipulated in the share purchase agreement (SPA) signed in August 2026.
From a market perspective, clearance from competition authorities removes a significant regulatory barrier for Nofoth's expansion plan. The deal structure features a fixed consideration of SAR 52.7 million alongside a conditional earn-out consideration of up to SAR 3.25 million, bringing the potential deal valuation to SAR 55.95 million. Completing this acquisition will allow Nofoth to expand its market footprint in the food production and distribution space.
Moving forward, the final completion of the transaction remains subject to the satisfaction of the remaining conditions precedent set out in the SPA and other statutory requirements. Nofoth has confirmed that the consideration terms remain unchanged and indicated it will update the market once the transaction is fully closed or upon any material developments.
