Arla Foods is still on the lookout for acquisition opportunities in Egypt, despite its decision to pull out of the race to acquire Arab Dairy Products Co.
A spokesperson for the company told just-food: “We are still pursuing other M&A opportunities in Egypt.”
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Earlier today (3 December), the European dairy cooperative revealed that it will not pursue the takeover bid for Arab Dairies that it launched in September. Arla said it decided to drop its offer having completed due diligence.
Arab Dairy posted annual sales of US$88.2m in 2013. The group has attracted competing bids from the likes of France’s Lactalis, Saudi’s Arrow Food Distribution and investment firm Pioneers Holding, which presently holds a 25% stake in the group.
The spokesperson for Arla added that the dairy major is working to grow its business throughout the Middle East and North Africa, with M&A offering a potential route to expand in the region. “Arla has growth ambitions for the entire Middle East and Africa region.”
As part of its strategy to 2017, launched last year, Arla intends to step up its presence in key emerging markets such as MENA and China. In an interview with just-food earlier this year, Rasmus Malmbak Kjeldsen, MENA SVP, said the company wants to build “stronger partnerships” in west and north Africa, with a particular focus on Egypt and Libya. He added trade is expected to grow by 20-25% across Africa, inclusive of Egypt, in the next four years.
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