Saudi’s NADEC agrees to acquire dairy competitor

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Updated 25 March 2018
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Saudi’s NADEC agrees to acquire dairy competitor

DUBAI: Saudi Arabia’s National Agricultural Development Co. (NADEC) has agreed to buy Al Safi Danone Company (ASD) in a deal that will help boost its business in the dairy industry in the Kingdom and extend its geographic reach, it said on Sunday.
ASD, a producer of dairy and juice products, is a joint venture between Saudi Arabia’s Al Safi Group of Companies and French food company Danone. The value of the transaction was not disclosed.
Under the deal, NADEC will buy all the shares in ASD. In exchange, Al Safi shareholders will own 38.8 percent of NADEC.
The combination is an example of an M&A deal in a private sector that the government hopes will play an increasing role in diversifying the economy away from a reliance on oil revenues.
NADEC has a market capitalization of 3.2 billion riyals ($853 million), slightly smaller than that of Saudia Dairy & Foodstuff Company.
Both are dwarfed by Almarai,the Gulf’s largest dairy company, which has a market capitalization of 54.4 billion riyals.
NADEC is 20 percent owned by Saudi’s Public Investment Fund, with the rest publicy traded on the Saudi bourse.
NADEC said the move would help it develop a broader portfolio and enhance its regional reach outside the kingdom in the United Arab Emirates, Kuwait, Bahrain, Jordan and Lebanon, in addition to new countries such as Iraq and Oman. ($1 = 3.7498 riyals)


Regulators fail to set date for 737 MAX return to service

Updated 1 min 10 sec ago
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Regulators fail to set date for 737 MAX return to service

  • ‘The only timetable is to make sure the aircraft is safe to fly’
  • Boeing had held off submitting a proposed software fix for review after his agency raised additional questions
FORT WORTH, United States: Civil aviation regulators from around the world failed to make a determination Thursday on when Boeing’s popular 737 MAX aircraft can return to the skies after being grounded following two deadly crashes.
“The only timetable is to make sure the aircraft is safe to fly,” Daniel Elwell, acting head of the US Federal Aviation Administration, said at the conclusion of the day-long meeting in Texas.
There was “enthusiastic agreement to continue the dialogue,” he said, but acknowledged that “each country has to make its own decision.”
“If they unground relatively close to when we unground I think it would help with public confidence,” Elwell said, while adding that: “We can’t be driven by some arbitrary timeline.”
Until the 737 MAX crashes in Ethiopia in March and Indonesia in October which left a combined 346 people dead, common practice was that air regulators would follow the assessment of the agency overseeing the model, in this case the FAA.
On Wednesday, Elwell threw cold water on hopes of a speedy resolution, after revealing Boeing had held off submitting a proposed software fix for review after his agency raised additional questions.
“Once we have addressed the information requests from the FAA, we will be ready to schedule a certification test flight and submit final certification documentation,” Boeing said in a statement.
Investigators have focused on the MAX’s anti-stall Maneuvering Characteristics Augmentation System in inquiries into the two deadly crashes.
Boeing last week said the MCAS update was ready for the certification process, and US airlines were hoping the planes could be back in the skies in time for part of the summer travel season.
But Elwell on Thursday said the process could take one month, two months or longer.
“It is all determined by what we find in our analysis of the application,” he said on CNBC.
Once Boeing has submitted all documentation, the FAA will conduct a test flight and detailed analysis to evaluate the safety of the software.
Richard Aboulafia, an aviation analyst at Teal Group, said Boeing wants to avoid having to repeat the process.
“There’s a lot at stake in terms of the first impression by the world’s regulators,” he told AFP.
US air carriers that operate the 737 MAX, including American Airlines, Southwest and United, have said they hope to have the planes flying again by mid-August at the latest.
The FAA’s reputation has taken a beating since the March crash, and faced accusations of an overly cozy relationship with the aviation giant. Other aviation authorities now appear less likely to follow the US agency.
Michel Merluzeau of Air Insight Research, said American officials could end the 737 MAX’s grounding toward the end of summer, with authorities in other countries following suit “several months” later.
“We’re headed for a return to service that could drag on in time,” he said.
Elwell said regulators also have yet to decide on changes to pilot training once the adjustments have been approved.
The United States has differed with a number of countries on this issue, including Canada. Washington believes training on computers or tablets is sufficient for seasoned pilots but Ottawa wants to require training on flight simulators.
Transport Canada said it had “full confidence” in the FAA and its processes, but did not rule out the possibility that pilots of 737 MAX jets would be required to receive simulator training.
Nicholas Robinson, director-general of civil aviation, told Canadian media the training was a “possible option” but added it was too early to say if it would be mandatory.
The European Aviation Safety Agency, Canada and Brazil are among countries saying they will conduct their own evaluations of the MCAS fix.
What China, the first country to ground the 737 MAX, will do is also an unknown given the flare-up in trade frictions with the United States.
About five dozen representatives from 33 countries accepted the FAA’s invitation to attend the regulators’ conference in Texas.
Elwell said the closed-door meeting involved “frank questions and a frank discussion,” adding that his counterparts wanted “clarifications” on US procedures.
Regaining public trust will take time, according to opinion polls conducted by Southwest showing that many passengers are not yet ready to get back aboard a 737 MAX jet.
And pilots also have qualms.
“Before the Boeing MAX’s return to service, we need answers and transparency,” the European Cockpit Association said Thursday in a statement.
The organization, which represents 38,000 pilots from 36 countries, said it was “deeply disturbing” that the FAA and Boeing were considering a return to service while not disclosing “the many challenging questions prompted by the MAX design philosophy.”
Beyond Boeing’s reputation, the 737 MAX crisis comes at a major financial cost, given that the plane represented 80 percent of the company’s order backlog as of the end of last month.
The company, which has suspended deliveries, is only paid at the moment of delivery and will have to indemnify air carriers for losses.