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November 6, 2019

Shan Foods ‘mulls majority stake sale with Unilever reportedly in the frame’

Shan Foods, a Pakistan-based spices and chutney maker, is reportedly mulling a sale of a majority stake.

By Dean Best

Shan Foods, a Pakistan-based spices maker, is reportedly mulling a sale of a majority stake, with consumer goods giant Unilever mooted as a possible buyer.

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Bloomberg reports, quoting unnamed sources, that Shan Foods has hired a financial adviser to explore a stake sale and has approached potential buyers including Anglo-Dutch FMCG heavyweight Unilever. The sources, who asked not to be identified as the discussions are private, said the deal could fetch US$250m. 

Deliberations are ongoing and Shan Foods can still decide to sell a non-majority stake or keep the business, the Bloomberg sources said. 

Karachi-based Shan Foods, which was founded in 1981, has responded via a statement posted on the front-page of its website. 

“Speculative news has been circulating on social media channels claiming that a multinational company is in the process of acquiring and/or has acquired Shan Foods,” the statement read. “As a proud Pakistani company, which has seen exponential growth globally, Shan Foods continues to explore organic and inorganic opportunities for further enhancement of its business. However, if and when such a situation develops, we will be the first to communicate the news to our respective shareholders.”

Shan Foods product line-up includes a range of Pakistani spices, garlic and ginger pastes, chutney and relishes, and dessert mixes.

just-food has approached Unilever to comment on the speculation but had not received a reply at the time of publication.

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Free Report
img

What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.

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