Talks for the sale of a majority stake in Saudi Arabian supermarket chain Al-Raya For Foodstuff Co to Dubai-based private equity firms Abraaj Group and Fajr Capital have stalled, according to three people with knowledge of the matter. Negotiations broke down because of differences over valuation as economic growth and consumer spending slow in the country, two of the people said, asking not to be identified as the information is private. The sale could value Al-Raya at as much as 1.7bn riyals ($460mn), three people with knowledge of the matter said in September.
Al-Raya’s owners, Dubai-based Levant Capital and the Rohatyn Group, appointed advisers to seek a buyer for their controlling stake in March, people with knowledge of the matter said that month. The two companies acquired their interest in Al-Raya for $100mn in 2012. 
Abu Dhabi-based Gulf Capital and Apollo Global Management also submitted bids to acquire the stake in Al-Raya, people familiar said in September.
A spokesman for Fajr declined to comment, as did a spokeswoman for Abraaj. Rohatyn and Levant Capital didn’t return calls seeking comment, while no one was immediately available to comment at Al-Raya.