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Tamimi Markets Acquires Al Raya Supermarkets: A Strategic Alliance Reshaping Saudi Retail Landscape

Tamimi Markets completes acquisition of Al Raya Supermarkets, expanding to 111 stores and promising exceptional shopping experiences in Saudi Arabia.

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Hadeel Hashem
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Tamimi Markets Acquires Al Raya Supermarkets: A Strategic Alliance Reshaping Saudi Retail Landscape

Tamimi Markets Acquires Al Raya Supermarkets: A Strategic Alliance Reshaping Saudi Retail Landscape

In a strategic move that marks a major milestone in the retail landscape of Saudi Arabia, Tamimi Markets has officially completed the acquisition of Al Raya For Food Stuffs Company JSC, a prominent supermarket chain with a significant footprint in the western region of the kingdom. This acquisition, finalized on February 15, 2024, signifies not just the expansion of Tamimi Markets’ geographical reach but also a deepening of its commitment to providing an enhanced shopping experience to an ever-growing customer base. With the integration of Al Raya’s 51 supermarkets into its network, Tamimi Markets solidifies its position as a key player in the national retail sector, poised for accelerated growth and increased market penetration.

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A Strategic Alliance for Growth

At the heart of this acquisition lies a shared vision for growth and excellence in customer service. Tamimi Markets, a family-owned business with a rich history and a strong reputation for quality, eyes this merger as a strategic step towards realizing its national expansion goals. The addition of Al Raya’s supermarkets, known for their neighborhood convenience and emphasis on fresh products, complements Tamimi’s existing operations by extending its reach across more than 20 cities in the Northwest, West, and Southwest regions of Saudi Arabia.

“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,” stated a spokesperson from Tamimi Markets. The synergy between the two companies is expected to leverage their combined operational strengths, thereby offering customers a wider range of products and a superior shopping experience.

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Facilitated by Industry Giants

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 acquisition not only underscores Tamimi Markets’ aggressive growth strategy but also highlights the confidence of its financial and legal partners in the potential of this merger to reshape the retail market landscape in Saudi Arabia.

In addition, the acquisition marks a significant milestone in the institutionalization of Al Raya, previously majority-owned by Levant Capital, which held a 75% stake. Under the new ownership, Al Raya is set to benefit from an independent management team, poised to drive the company towards greater heights of success and operational excellence.

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Looking Towards the Future

With this acquisition, Tamimi Markets’ portfolio now boasts a total of 111 stores, setting the stage for an ambitious trajectory of growth across the region. The merger is not just a testament to Tamimi Markets’ expansionary vision but also signals a new era of retail excellence in Saudi Arabia. By leveraging the combined strengths and resources of both entities, Tamimi Markets is well-positioned to cater to the evolving needs of its customers, offering them unparalleled quality, variety, and convenience.

The strategic significance of this merger extends beyond the immediate benefits to both companies. It represents a forward-thinking approach to business growth in the retail sector, emphasizing the importance of adaptability, customer focus, and strategic partnerships. As Tamimi Markets embarks on this new chapter, it reaffirms its commitment to excellence and innovation, promising to set new benchmarks in the retail industry of Saudi Arabia.

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