Al Futtaim to acquire $666m stake in Saudi retail group Cenomi

21/07/2025 02:33 AST

Leading UAE business conglomerate Al Futtaim today (July 20) announced that it has agreed to buy a major stake in Cenomi Retail, Saudi Arabia's leading retail brand partner, in a deal worth SAR2.5 billion ($666 million).

Pursuant to the share purchase agreement, Al Futtaim will acquire a 49.95% stake in Cenomi Retail (each share priced at SAR44) from the selling shareholders, namely, Fawaz Abdulaziz Alhokair, Abdul Majeed Abdulaziz Alhokair, Salman Abdulaziz Alhokair, Saudi FAS Holding Company, and FAS Real Estate Company.

Al Futtaim said it is currently in talks with Cenomi Retail, negotiating a shareholder loan agreement pursuant to which Al Futtaim will extend a shareholder loan of an amount not less than SAR1.3 billion, upon completion of the transaction, to help strengthen Cenomi Retail's balance sheet and support its next phase of growth, the entry of which is a completion condition for the private transaction between the selling shareholders and Al Futtaim.

This landmark deal represents a major milestone for Cenomi Retail, introducing Al Futtaim as a long-term strategic shareholder and signaling strong confidence in the company's growth trajectory and market leadership in Saudi Arabia's dynamic retail sector.

The Emirati group said the strategic investment in Cenomi Retail is a key step in its transformation journey.

Al-Futtaim brings not only significant capital but also deep retail expertise, operational capabilities, and a strong track record of building successful consumer platforms across the region, it stated.

The company believes this collaboration will accelerate its ability to seize new opportunities and deliver long-term value to its shareholders, it added.

The transaction is subject to customary regulatory approvals, including clearance from the General Authority for Competition in Saudi Arabia, and other contractual conditions. Further updates will be provided as the transaction progresses.

One of the region's leading private business groups, Al Futtaim boasts operations spanning automotive, financial services, real estate, retail, and healthcare across the Middle East, Asia, and Africa.

The group 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 UAE and Egypt.

Their global expertise and operational excellence will further enhance Cenomi Retail's platform and future growth trajectory, it stated.

Fawaz Abdulaziz Alhokair, one of the selling shareholders of Cenomi Retail, said this transaction marks a transformative milestone for Cenomi Retail and its shareholders.

"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," he stated.

"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," he added.

On the strategic deal, Vice Chairman and CEO Omar Al Futtaim said: "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," he added.

Cenomi Retail CEO Salim Fakhouri said: "Today's announcement demonstrates that Cenomi Retail is firmly on the right strategic path towards our next phase of growth, focused on scalable, high-performing global brands that drive long-term value to our shareholders."

"Having Al Futtaim as a strategic investor enables us to capitalize on their proven capabilities and further solidify our leadership in the retail sector and position us for sustainable growth and compelling shareholder returns," he stated.

Upon completion of the transaction, Al Futtaim will work closely with Cenomi Retail's management and board to drive operational efficiencies, enhance customer offerings, and unlock significant value for all shareholders, he added.

For the transaction, Lazard was the exclusive financial advisor for Cenomi Retail, while JP Morgan took over that role for Al Futtaim.

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