Exclusive: Selling Saudi Arabia’s grain mills proves a grind for investors

An unwieldy sale process and onerous ownership rules are discouraging some potential investors from bidding for Saudi Arabia’s state-owned grain mills, sources close to the firms say, in a potential snag for the kingdom’s economic reforms.

Crown Prince Mohammed bin Salman wants to modernize Saudi Arabia and reduce its dependence on oil. The kingdom is selling assets worth about $300 billion to fund the plan and potential foreign investors and bankers are watching the sales closely.

The grain mills on sale come under the kingdom’s monopoly state grain buyer the Saudi Grains Organisation (SAGO), one of the world’s largest wheat and barley buyers.

Archer Daniels Midland Company (ADM.N) and Bunge Limited (BG.N) – two of the world’s four biggest agribusiness firms – are among several international companies that have previously expressed interest in bidding for SAGO’s assets. Read more…