Arla has withdrawn from the race to acquire Egypt-based Arab Dairy Products Co, the European dairy cooperative revealed today (3 December).
Arab Dairy has attracted takeover offers from France’s Lactalis, Saudi’s Arrow Food Distribution and investment firm Pioneers Holding, which presently holds a 25% stake in the group. Arla said it decided to drop its offer having completed due diligence.
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“Our conclusion, based on the due diligence, is that we shall not place a final tender offer for Arab Dairy,” Finn Hansen, EVP for Arla’s international business, said.
However, Hansen stressed that alternative options to enter Egypt are still being explored. “Egypt is, however, still an interesting market for us and we are working on alternative options to enter the market soon,” he said.
