Tyson Foods buys equity stake in Saudi company

Tyson Foods will pay about $70 million to acquire a stake in Saudi Arabia's Tanmiah Food Co.

• The deal is subject to approval by the Kingdom of Saudi Arabia regulators.

Why it matters: The global population is expected to grow by 2 billion people by 2050, creating a greater need for food, especially protein.

• Growing demand for meat and poultry is largely outside the U.S. as developing countries become richer and can afford it.

Details: Tyson said it will acquire a 15% equity stake in Tanmiah subsidiary Agriculture Development Company, the part of the business that grows poultry and processes and sells fresh, frozen and ready-to-cook chicken under the Tanmiah brand.

• Tyson will also acquire 60% equity in Supreme Foods Processing Company, the portion of Tanmiah's business that processes chicken and beef into cooked products like tenders, patties or deli meats.

Supreme lists food service companies like KFC, Popeyes, Pizza Hut and Subway as customers it serves in the Middle East.

What to watch: President Joe Biden is set to visit Saudi Arabia next week.

• The administration announced last month $2.1 billion in funding to enhance competition in food processing and distribution and expand markets for farmers.

Disclosure: Reporter Worth Sparkman formerly worked at Tyson Foods.