The Saudi Arabian group SAVOLA has sold all its assets in Iran for 705 million Saudi riyals (approximately $188 million) and is exiting the country.
SAVOLA, the largest Saudi investor in Iran, had invested in the production of cooking oils, including the brands Ladan, Bahar, and Nastaran.
SAVOLA Food Company in Iran, a subsidiary of the larger SAVOLA Group, was engaged not only in the production and distribution of edible oils but also in seafood, industrial bread, and confectionery products.
Iranian media outlets, including 7sobh, have speculated that the decision to sell and exit the country is linked to Donald Trump‘s re-election in the U.S. and his impending return to office.
However, according to a statement issued by SAVOLA Group on Wednesday, January 1, the company’s withdrawal from Iran was “in line with the group’s strategy to exit non-core markets at the right time.”
The statement also noted that the group had previously withdrawn from its investments in Morocco and Iraq in 2023.
Iran’s state-run ISNA news agency had previously reported that SAVOLA expressed interest in investing in Beheshti Industrial Company in 2004 and initially purchased a 49% stake. Later, in 2007, the company acquired an additional 31%, bringing its total ownership in Beheshti Industrial Company to 80%.
In 2015, Tasnim News Agency, affiliated with Iran’s Islamic Revolutionary Guard Corps (IRGC), reported that SAVOLA supplied 40% of Iran’s edible oil consumption and had full ownership of SAVOLA Behshahr Sugar Company as well as the distribution company Tolou Pakhsh Aftab.