There are several companies which are joint form Iran and Persian Gulf countries in various common sectors such as oil, food, polymer, plastic, live animals and etc. According to recent decision about political and economic relations between Iran and Arabian countries, there are consequences on economic situations for both sides. Specifically, Saudi Arabia and Iran have many cooperation in vast industries. One of the most important case is food and edible oil industry which collaboration of these 2 countries has been started since 2004. The most important firm in this sector which operate in international market is Savola Group Co. The company has ranked 9th among top 100 companies and the second one in food and oil industry in Saudi Arabia. The main products of Savola are edible oils, sugar, fresh dairy products, and restaurants serving fast foods. The major market of Savolas products is in Middle East and North Africa. Moreover, the largest grocery retailing chain is in the Middle East, which named Azizia Panda Supermarket. Savola group has recently listed its Oils and Fats division in the Saudi Stock market under the name Afia International.
Behshahr Industrial Co. is an entity which produce edible oil in Iran. Also, this firm has been listed in Tehran Security Exchange market. In addition, Behshahr has more than 35% of edible oil market share in Iran and is among top of manufactures in this industry. The main shareholder of this company is Savola Group which has about 80% of Behshahr Industrial Company’s share. According to stats of this joint business, Behshahr Industrial Co. in Iran provided 11% of Savolas total revenue in the third quarter of 2015 and the company’s revenues for Iran totaled 534 million Dollars in the first nine months of 2015.
As a consequence, decision made among Iran and Persian Gulf countries, risk of cooperation between these two great companies increased and Behshahr Industrial Co. will be affected by the recent regional tensions. Savola stock shares in Stock Exchange decreased in the news announcement date. On the other hand, in Tehran Stock Exchange, Behshahr Industrial Co. share have been decreased about 10% because of related risk about ending the cooperation between Savola group and Behshahr.
Moreover, according to the stats more than 13% of Savolas revenue is reached in Iran by Behshahr and Savola Group. In conclusion, by ending the cooperation between Savola and Behshahr, Savola will lose the great market share and also the main revenue.