Saudi food manufacturer and retailer Savola has announced the acquisition of 11 GEANT supermarkets from Fawaz Alhokair.

Savola agreed to acquire the supermarkets for a purchase price of SAR440m (US$117.3m). However, in a regulatory filing, the company said that this price excludes inventory.

“The inventory is being negotiated on a separate basis. We are examining existing inventory and have agreed to pay the original purchase price with no mark-up,” a spokesperson for the group clarified.

Savola said that the acquisition would expand its presence in the Saudi food retail market, where it already operates 79 supermarkets and hypermarkets.

“This deal will further strengthen our position in the grocery retailing sector, where we intend to grow our market share,” the spokesperson said.