The Saudi Arabian dairy group Almarai has announced that it has entered into a Memorandum of Understanding to acquire 75% of Western Bakeries Company Limited, which produces and distributes baked food products under the L'Usine brand throughout Saudi Arabia.

Almarai will acquire the 75% stake from shareholders of Western Bakeries Company Limited and International Baking Services in exchange for new Almarai shares, Almarai said.

The company added that the transaction remained subject to the execution of the definitive agreement, satisfaction of all agreed basic terms and stipulations, due diligence and the approval of the Almarai board and general assembly, in addition to regulatory approvals.