Argentina is known regionally and internationally for its beef. Its Gauchos are famous as South American cousins to the famous American cowboy.
Due to increasing demands on limited water resources in Saudi Arabia, Almarai Co. has moved forward with intentions to purchase 30,000 acres of Argentine farmland, just before new regulations by newly elected President Cristina Fernández.
To acquire the territory, the Saudi company will purchase the Argentine dairy organization Fondomonte S.A. The deal is reportedly $83 million USD.
The new regulations imposed by President Fernández include a stipulation that no more than 15% of territory in Argentina may be owned by foreign interests despite the fact that information does not exist which tabulates territorial ownership. A new agency has been tasked with compiling relevant ownership information.
At 30,000 acres, the farm is roughly 20% of the total size of Chile’s famous Torres del Paine National Park.