Arla Foods has requested an additional 60 days to complete its due diligence process for the Egyptian dairy company Arabian Food Industries (Domty)

The extension, granted by local financial authorities, was announced through a stock exchange notice issued by Arabian Food Industries, according to FødevareWatch. Arla Foods’ press office confirme the approval, allowing the company to extend its review by 60 working days.

On October 15, Arla submitted a non-binding offer to acquire a majority stake in Domty, a publicly traded company. The bid, valued at 31.48 EGP per share, equates to a total of 8.897 billion EGP for 100% of the shares—approximately 183 million USD.

In a press release, Arla Foods stated its intention to delist Domty from the Egyptian stock exchange if the acquisition proceeds. The current owners, the El Damaty family, are expected to retain a minority stake in the company, and Mohamed El Damaty will remain as CEO.

• The dairy market in Egypt is significant, and Domty is a leading player in the industry. The company fits well with our strategic ambitions for the region. We are now conducting a more detailed review of the business before deciding whether to proceed with the acquisition, said Kim Villadsen, Senior Vice President for MENA (Middle East and North Africa) at Arla Foods, in an earlier press release.

Read the article in FødevareWatch  Foto: Arla