Chicken Giant Tyson Expands in Middle East With $70 Million Deal

If you sign up for our newsletter, you'll get the latest news on the region.

Tyson Foods is buying a stake in Saudi Arabia's Tanmiah Food Co. in order to increase chicken production in the Middle East.

Tyson, the biggest US meat company by sales, is competing with international rivals for market share as demand for meat increases. According to US government data, chicken is expected to account for more than 40% of the world's meat consumption by the end of the decade.

Tyson agreed to acquire stakes in Tanmiah subsidiaries that operate chicken hatcheries, feed mills and poultry-processing plants in Saudi Arabia, Kuwait, Bahrain, the United Arab Emirates, and other countries.

According to a statement by the Saudi company, Tyson will pay about $70 million for the stakes in Tanmiah's Agricultural Development Co.

Tan Sun, president of Tyson Foods in Asia-Pacific, said in the statement that the deal would allow Tyson to "unlock long-term opportunities in the growing Halal food market."

Tanmiah shares increased in Riyadh. Tyson stock didn't change much.

There has been a shift in US meat consumption.

Next week, US President Joe Biden is going to Saudi Arabia. Major food producers have been criticized by Biden for contributing to the worst food inflation since the 1980's.

With the help of a man.