Tate & Lyle to sell stakes in Saudi and Egyptian sugar refineries

By Caroline Scott-Thomas

- Last updated on GMT

Related tags: Middle east, Saudi arabia, Lyle

Tate & Lyle has reached an agreement to sell its minority stake in sugar refineries in Saudi Arabia and Egypt to Saudi-based sugar refiner Savola, the companies have said.

The divestment is the latest stage in Tate & Lyle’s sale of its sugar trading business, announced in July 2008 with the sale of its international sugar trading business to oilseed giant Bunge. Tate & Lyle said that the sale would reduce its exposure to volatile commodity prices and allow the company to concentrate on its core refining operations in the European Union.

Although neither company would disclose the value of the agreement, a spokesperson for Tate & Lyle told FoodNavigator.com that the sale would cover its 9.68 per cent stake in the Saudi Arabian refinery and its 3.58 per cent stake in another refinery in Egypt.

He said: “When we announced the sale of our International Sugar Trading business in July 2008, we made it clear that the business sold excluded a small number of minority interests related to the sugar trading business which would be disposed of separately in accordance with the related shareholders agreements.”

The deal reflects the company’s move away from being a commodity processor and trader to a focus on higher value products.

The Savola Group, the largest sugar refiner in the Middle East, is already the principal partner in these two facilities, with a 64.8 per cent stake in the United Sugar Company, which runs the Saudi refinery, and a 53.5 per cent stake​in the United Sugar Company of Egypt (USCE), which runs the Egyptian refinery. The two facilities have annual production capacity of 1.2m MT, and 750,000MT respectively, according to Savola.

Savola said in a statement that the USCE intends to increase production capacity at the Egyptian refinery to 1m MT per annum by adding a beet sugar line.

Related news

Show more

Related products

show more

Explore the benefits of acacia on digestive health

Explore the benefits of acacia on digestive health

Alland & Robert | 17-Mar-2021 | Technical / White Paper

Consumers are looking for ingredients helping them living a healthy life, and are more and more aware that digestive health is key to global health. Acacia...

Planting Possibilities: Insights

Planting Possibilities: Insights

Ingredion | 16-Mar-2021 | Research Study

A fifth of consumers globally are cutting back on animal-based products or cutting them out completely. This mega-trend is only accelerating as health-conscious...

Less sugar, fuller fruity flavour

Less sugar, fuller fruity flavour

H&F – Innovative Solutions for your Product Developments | 23-Sep-2019 | Application Note

Herbstreith & Fox presents new Classic pectins which set with no added calcium – perfect for modern fruit spreads with as little sugar as possible,...

Related suppliers

Follow us


View more