Oman Flour Mills acquires majority stake in Arabian Food Production
The acquisition adds a 33.34 per cent stake from Gulf Japan Poultry Farm, a transaction that would substantially raise OFM’s holding in the food producer.
OMAN – Oman Flour Mills Company SAOG (OFM), a cornerstone of the Sultanate’s food sector, has signed a share purchase agreement to increase its stake in Arabian Food Production Company SAOC from 33.33% to 66.67%, thereby securing majority control through its wholly owned subsidiary, Atyab Investments LLC.
The deal acquires the remaining 33.34% stake from Gulf Japan Poultry Farm, subject to regulatory approvals and conditions.
Upon completion of the transaction and subject to the fulfilment of agreed conditions, its stake will rise to 66.67 per cent, giving the OFM group a controlling interest in the company.
OFM noted that any material developments regarding completion of the transaction will be disclosed in accordance with regulatory requirements.
The acquisition marks another step in OFM’s broader strategy to strengthen vertical integration across the food value chain and enhance domestic food production capabilities in support of Oman’s long-term food security objectives.
This vertical integration play enhances OFM’s dominance in Oman’s integrated food chain, from milling to finished products like breads, pastries, and poultry feeds produced by Arabian Food.
OFM, under Oman Food Capital (an Oman Investment Authority affiliate from the Nitaj-FDO merger), aligns with Vision 2040’s food security goals by enhancing local production resilience.
The move promises streamlined operations, cost efficiencies, and faster innovation in high-demand segments.
Arabian Food Production specializes in bakery mixes, premixes, and value-added flours, complementing OFM’s flour milling and pasta arms amid rising domestic consumption.
In recent years, OFM has expanded its investment portfolio both domestically and internationally to secure grain supplies, diversify sourcing channels and improve supply-chain resilience.
Key initiatives include establishing Oman-Australia Limited, which works directly with Australian farmers to secure wheat shipments and reinforce Oman’s strategic grain reserves.
The company has also launched Atyab International Services in Uzbekistan, providing laboratory testing and quality assurance services to support import controls and regional food exports.
These investments are part of a long-term strategy aimed at strengthening food product quality, expanding global sourcing networks and supporting the national economy by ensuring reliable access to essential commodities.
OFM has also invested in feed milling operations and frozen bakery production, while exploring opportunities for further regional expansion, including bakery operations in Saudi Arabia and potential agricultural collaboration projects overseas.
Industry observers note that the planned acquisition of additional shares in Arabian Food Production Company will allow OFM to deepen operational coordination within its food manufacturing ecosystem, potentially improving production efficiency and strengthening market competitiveness.
Greater control over ownership could also enable the company to accelerate new product development and expand capacity in high-demand segments of the domestic food market.
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