Muscat: The Oman Investment Authority (OIA) has commenced the preliminary procedures for the amalgamation of the operations of Oman Food Investment Holding Company (Nitaj) and Fisheries Development Oman (FDO), aiming to integrate these entities into a unified business entity. This initiative is a strategic move to bolster the food security sector within the Sultanate of Oman, aligning with OIA's objective to enhance efficiency and optimize expenditure in this critical sector, underpinned by a cohesive and unified vision. This merger represents a significant step towards achieving improved performance, superior product quality, cost-effectiveness, efficient decision-making, and alignment with the national objectives of Oman Vision 2040.
The process of the merger is meticulously planned and executed in collaboration with the relevant governmental bodies, adhering to a structured action plan and a predetermined timeline. This initiative is in accordance with OIA's mandate to establish, amalgamate, liquidate, or divest its companies in compliance with the legal and regulatory frameworks outlined by Royal Decree No. 57/2021, which established the System of Oman Investment Authority.
The anticipated outcome of this merger is a substantial increase in revenue through the synergistic effect of the integrated value chains. This synergy will be realized by the consolidation of procurement, contracts, logistics, and business operations.
Additionally, the merger project will take into consideration the impact on the workforce of both companies, ensuring that employees are well-informed about pertinent matters. The Boards of Directors from both companies will exchange pertinent information with their respective employees and facilitate open discussions regarding the project.
The Boards of Directors from both companies will maintain communication with their financing institutions, informing them about the merger to ensure transparency and adherence to legal and contractual obligations.
Moreover, the obligations of the two companies will be evaluated in relation to ongoing projects and existing contracts with contractors to safeguard against any adverse effects on these commitments due to the merger.
