Tamimi Markets, a family-owned grocery chain that has been operating in Saudi Arabia since 1979, has announced the completion of its acquisition of Al Raya For Food Stuffs Company JSC, a leading supermarket operator in the western region of the kingdom. The deal, which was finalized on February 15, 2024, marks a major milestone in the retail landscape of Saudi Arabia, as it strengthens Tamimi’s position as a key player in the national market. The acquisition adds 51 stores to Tamimi’s portfolio, bringing the total number of its supermarkets to 111 across more than 20 cities in the Northwest, West, and Southwest regions of Saudi Arabia.
The acquisition is driven by a shared vision for growth and excellence in customer service, as both Tamimi and Al Raya have a rich history and a strong reputation for quality and convenience. Tamimi Markets, which is partly owned by the Public Investment Fund (PIF), the sovereign wealth fund of Saudi Arabia, has been pursuing an aggressive growth strategy to expand its geographical reach and offer a wider range of products and services to its customers.
Al Raya, which was established in 1991, has been known for its emphasis on fresh products and neighborhod convenience, serving a loyal customer base in the western region of the kingdom. By integrating Al Raya into its network, Tamimi Markets aims to leverage the combined strengths of both companies and provide an enhanced shopping experience to its existing and new customers.
A smooth transition and integration process
The successful closure of the deal was facilitated by ANB Capital, which acted as the financial advisor to Tamimi Markets. The legal intricacies were navigated with the expertise of the Law Office of Mohanned bin Saud AlRasheed in Association with Baker Botts L.L.P., ensuring a smooth transition and integration process. The spokesperson of Tamimi Markets stated, “This acquisition is more than just a transaction. It’s a fusion of strengths, bringing together two entities that share a common ethos of service and quality. By integrating Al Raya into our family, we are not just expanding our network, but also enriching our capability to serve our customers better.” The spokesperson also expressed gratitude to the financial and legal partners for their support and guidance throughout the process.
A promising future for the retail sector
The acquisition of Al Raya by Tamimi Markets is expected to have a positive impact on the retail sector of Saudi Arabia, as it reflects the confidence and potential of the market, especially amid the challenges posed by the COVID-19 pandemic. The retail sector is one of the key pillars of the Saudi Vision 2030, the ambitious plan to diversify the economy and reduce its dependence on oil. The retail sector is projected to grow at a compound annual growth rate (CAGR) of 7.3% from 2020 to 2025, reaching a value of $142.6 billion by 2025, according to a report by Research and Markets. The acquisition of Al Raya by Tamimi Markets is a testament to the resilience and dynamism of the retail sector, as well as the commitment of both companies to contribute to the realization of the Saudi Vision 2030.
