(MENAFN- Daily News Egypt) The Egyptian Financial Supervisory Authority (EFSA) approved Monday Al-Nour Company for Dairy Product's bid to purchase all shares of the stock-listed Arab Dairy Product Company (ADPC), the regulatory body said.
Al-Nour made its offer to acquire 100% of Arab Dairy shares, with a minimum of 51% of its stakes, with the value of EGP 58 per share.
In early December, Swedish-Danish Arla Food, the world's 7th largest dairy firm, announced it will not complete a bid for all shares of Arab Dairy after a thorough investigation into the company.
"Our conclusion, based on the due diligence, is that we shall not place a final tender offer for Arab Dairy," said Finn Hansen, Executive Vice President for Arla's international business group in a statement.
Arab Dairy started production in 1990 in Egypt, and currently exports to countries across the Middle East. It registered a loss of EGP 24m in the first nine months of 2014, according to its statements.
Egyptian dairy product exports amount to approximately $25m each year, out of $179m in juice and beverages exports, according to the Food Export Council.
Another acquisition dispute is currently ongoing between UAE's Abraaj Group and US-based Kellogg's to acquire 51% shares of BiscoMisr. Egypt's main producer of biscuits and cakes has had prices of shares reaching EGP 89.
In a similar move, the EFSA approved, in June, an offer submitted by a Beltone-Sawiris alliance to acquire 20% of the EFG-Hermes. However, the acquisition was not completed as the alliance refused the rate offered for purchase.
Mergers and acquisition transactions in the Middle East have grown by 250% in the second quarter (Q2) of 2014 compared to the previous quarter, recording a value of $14bn. The figures come as part of a Thomson Reuters' quarterly investment banking analysis on the Middle East, published in July.
The report noted that this is the highest registered quarterly value since Q1 of 2011. However, on a larger scale, it added that the value of M&A deals during the first half (1H) of 2014 has declined 4% from the same period in 2013, highlighting $19.7bn in total.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.