Al-Futtaim, one of the region’s most prominent and diversified private business groups with interests ranging from automobiles, real estate, healthcare, and retail, has signed a share purchase agreement (SPA) with Cenomi Retail, Saudi Arabia’s leading retail brand partner.
In a private transaction, Al-Futtaim will acquire a 49.95 per cent stake in Cenomi Retail from members of Alhokair family, Saudi FAS Holding Company, and FAS Real Estate Company.
The shares are priced at SAR 44 (US$11.73) each, valuing the transaction at more than SAR 2.5 billion (US$670 million). The transaction is subject to mandatory regulatory approvals, including clearance from the General Authority for Competition in Saudi Arabia, and other closing conditions.
Al-Futtaim expands presence in Saudi Arabia
Al-Futtaim and Cenomi are currently negotiating a shareholder loan agreement, after which Al-Futtaim will extend a shareholder loan of an amount not less than SAR 1.3 billion (US$350 million) to help strengthen the Saudi company’s balance sheet and support its next phase of growth.
The introduction of Al-Futtaim as a long-term strategic shareholder marks a milestone for Cenomi Retail, signaling strong confidence in the company’s growth trajectory and market leadership in Saudi Arabia’s dynamic retail sector.
Al-Futtaim brings significant capital, as well as retail expertise, operational capabilities, and a strong track record of building successful consumer platforms across the region.
Omar Al Futtaim, Vice Chairman and CEO of Al-Futtaim, commented: “Our investment in Cenomi Retail reflects our strong confidence in the Kingdom of Saudi Arabia’s economy and its long-term Saudi Vision 2030. This investment represents substantial foreign direct investment from the UAE private sector and underscores the robust economic partnership between our countries.
“It strengthens our presence and customer reach in Saudi Arabia, a strategic market with solid fundamentals and a clear national vision. We see significant opportunities to support Cenomi Retail in enhancing operations, accelerating digital transformation, and expanding its brand portfolio. This partnership also paves the way for further collaborations in the dynamic Saudi market.”
With presence across the Middle East, Asia, and Africa, Al-Futtaim brings a proven track record in retail, including exclusive operations of leading Inditex brands like Zara, Massimo Dutti, and Bershka across key markets such as Malaysia, Thailand, and Singapore, as well as other retail operations across the Kingdom of Saudi Arabia, the United Arab Emirates and Egypt.
In a statement, the company said it “believes this strategic collaboration will accelerate its ability to seize new opportunities and deliver long-term value to its shareholders”.
Fawaz Abdulaziz Alhokair, one of the selling shareholders of Cenomi Retail, added: “This transaction marks a transformative milestone for Cenomi Retail. By deleveraging our balance sheet and establishing a stronger financial foundation, we are reinforcing long-term partnerships with stakeholders and positioning the company to deliver sustainable growth and enhanced shareholder value.
“The entry of Al-Futtaim as a strategic investor in the company will provide it with the investor’s deep sector expertise, operational scale, and a shared long-term vision. Al-Futtaim’s global retail footprint, financial strength, and presence in the Kingdom make them an ideal strategic investor.
“This strategic investment unlocks significant value for all stakeholders and aligns with Saudi Arabia’s Vision 2030 to diversify the economy and attract foreign investment.”
Upon completion of the transaction, Al-Futtaim will work closely with Cenomi Retail’s management and board to drive operational efficiencies and enhance customer offerings.
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