Arla Foods Pursues Strategic Expansion with Offer for Majority Stake in Egyptian Dairy Leader Domty
Source: DairyNews.today
Arla Foods has taken a major step toward expanding its presence in the Middle East and North Africa (MENA) region by announcing a non-binding offer to acquire a controlling stake in the Arabian Food Industries Company, better known as Domty. The proposal values Domty at around 8.9 billion Egyptian pounds (approximately $183 million), with a per-share price of 31.48 EGP.
This acquisition would further position Arla within Egypt’s substantial dairy market, where Domty holds a leading role. Employing approximately 4,000 people and operating two production facilities, Domty has established itself as a significant player in Egypt's food and beverage sector. Should the deal move forward, it is expected that the El Damaty family, Domty's current owners, will retain a minority stake. Mohamed El Damaty, CEO of Domty, is anticipated to continue leading the company following the transaction. Arla also intends to delist Domty from the Egyptian stock exchange as part of the acquisition process.
Kim Villadsen, Arla's Senior Vice President for the MENA region, highlighted the strategic alignment of Domty with Arla’s ambitions in Egypt. “The dairy market in Egypt is substantial, and Domty is a leader in that market. The company aligns well with our strategy in the region, and we are now carefully examining the details before making a final decision,” Villadsen stated.
Arla’s offer is contingent on the successful completion of due diligence, finalizing of legal documentation, and obtaining the necessary corporate and regulatory approvals. While the specifics of the offer are publicly accessible due to Domty’s listing on the Egyptian stock exchange, Arla has refrained from discussing further transaction details.
Arla Foods, a cooperative owned by around 8,000 farmers from multiple European countries, has significantly strengthened its footprint in the MENA region, its largest commercial area outside of Europe. Known for its focus on sustainable farming and high-quality dairy products, Arla has built a portfolio of reputable brands, including Arla, Lurpak, Puck, and Castello. This potential acquisition underscores Arla’s ongoing commitment to growth in emerging markets and solidifies its dedication to meeting rising demand for dairy products in Egypt and the broader MENA region.
Kim Villadsen, Arla's Senior Vice President for the MENA region, highlighted the strategic alignment of Domty with Arla’s ambitions in Egypt. “The dairy market in Egypt is substantial, and Domty is a leader in that market. The company aligns well with our strategy in the region, and we are now carefully examining the details before making a final decision,” Villadsen stated.
Arla’s offer is contingent on the successful completion of due diligence, finalizing of legal documentation, and obtaining the necessary corporate and regulatory approvals. While the specifics of the offer are publicly accessible due to Domty’s listing on the Egyptian stock exchange, Arla has refrained from discussing further transaction details.
Arla Foods, a cooperative owned by around 8,000 farmers from multiple European countries, has significantly strengthened its footprint in the MENA region, its largest commercial area outside of Europe. Known for its focus on sustainable farming and high-quality dairy products, Arla has built a portfolio of reputable brands, including Arla, Lurpak, Puck, and Castello. This potential acquisition underscores Arla’s ongoing commitment to growth in emerging markets and solidifies its dedication to meeting rising demand for dairy products in Egypt and the broader MENA region.
