Fonterra has announced that it is now all set to enter into a $45 Million deal to purchase the remaining 51% stake in Saudi New Zealand Milk Products, which is a joint venture manufacturing plant of the company with Sadafco in the gulf state.

The complete acquisition was till now waiting for approval from the Saudi Arabian regulatory, and that in place, the purchase is now all set to happen.

Saudi packs and processes over 30,000 tones of New Zealand milk every year for Fonterra as well as various other customers. The acquisition has been termed as an important step in the company's growth and business expansion by Fonterra's Regional Managing Director for Asia/Africa and the Middle East, Mark Wilson.

"We are building a sizable business in 20 countries in this region which combined, account for 250 million people and a dairy market value of more than $US5 Billion. It is critical that we have long-term access to manufacturing capacity near these markets to support our growth", said Mr. Wilson.

According to Fonterra's website, Saudi Arabia and UAE are the firm's fastest growing markets in the Middle East, and account for about 60% of its business in the Gulf.