Saudi PIF in talks to buy LuLu stake

The Saudi Arabian sovereign fund, Public Investment Fund (PIF), is reportedly in talks to buy a minority stake in LuLu Group, the largest retail business group of the Middle East.

The amount of the deal or the date of finalization is not yet clarified. LuLu Group with an annual turnover of US$ 7.4 billion, operates shopping centres, hypermarkets and Hospitality businesses around the world. LuLu Group Director of Marketing & Communications, V.Nandakumar who declined to comment on the deal told Reuters: “As a policy, we never comment on market speculations and media rumours. We always use our official communication channels to inform the media whenever there is any corporate update.” PIF, chaired by HRH Mohammed bin Salman, the crown prince of Saudi Arabia, has over US $360 billion investment fund and has invested in many big companies including NOON.com. Recently, PIF was also approached by Reliance to buy a stake in the retail arm of Indian billionaire Mukesh Ambani’s Reliance Industries Ltd, reported Reuters.

The latest move follows the investment of US$1.1 billion in LuLu Group, excluding Indian & Qatar operations, by Abu Dhabi govt owned investment company ADQ. This money is being used to expand the LuLu businesses in new markets of Jordan, Iraq & Morocco. ADQ, which is Chaired by HH Sheikh Tahnoun bin Zayed Al Nahyan (Ruling family member & brother of Abu Dhabi Crown Prince HH Sheikh Mohammed bin Zayed) is one of the biggest investment company in the region.

These investments show the confidence the ruling families and big investment funds have on the strength of Lulu Group & it’s Chairman Yusuffali MA.

LuLu operates 194 Hypermarkets, has more than 55,000 employees, serving more than 1.6 million customers daily in 22 countries. Apart from retail, it has business interests in food processing, hospitality (Grand Hyatt, Marriott in India and Sheraton in Oman, London Scotland Yard etc) and online shopping.