Cadiz Inc. agreed to combine its Sun World International water and farming business with an Egyptian agricultural company controlled by billionaire Saudi Prince Al Waleed ibn Talal ibn Abdulaziz al Saud.
Santa Monica-based Cadiz will own 50.25% of the combined company. Kingdom Agricultural Development Co., a private agricultural company founded by Al Waleed, will control 49.75%, said Cadiz spokeswoman Cynthia Coulter. Terms were not disclosed.
The merger will enable Sun World to expand sales of its farming and irrigation management business, Coulter said.
Sun World has been managing Kingdom's effort to grow melons and grapes on 100,000 acres in southern Egypt since 1999, according to a Cadiz release. The Egyptian government is building a 43-mile canal to funnel water from the Nile River to farms owned by Al Waleed and other developers.
Cadiz rose 30 cents to $9.25 on Nasdaq.