Saudi Arabia's Almarai Company, the Gulf's biggest dairy firm by market value, has acquired Fondomonte which owns and operates farms in Argentina, to secure feed for its dairy herd and poultry businesses.

'The transaction value is SR312 million ($83 million) and is financed from a combination of operational cash flows and Islamic banking facilities,' Almarai said in a bourse statement on Wednesday.

Fondomonte has three farms totalling 12,306 hectares which focus on the production of corn and soy beans, the statement said.

In June Almarai said it plans to invest 4 billion riyals in the poultry sector.

Earlier this month Almarai said it plans to increase its capital by 73.9 percent to 4 billion riyals from 2.3 billion through the distribution of one bonus share for each 1.739 shares.-Reuters