Arla has withdrawn its acquisition offer for the Egyptian dairy company Domty following the company’s announcement that it intends to split its operations into two separate entities. This was reported by Landbrugsavisen.

In October, Arla submitted a bid of DKK 1.25 billion for the Egyptian food company Arabian Food Industries Company, widely known as Domty. The due diligence period – during which Arla had the opportunity to evaluate whether to submit a binding acquisition offer – expired at midnight on Thursday. It was at this final stage that Arla decided to withdraw its offer. The dairy group confirmed the decision in a written statement to Landbrugsavisen on Thursday.

• At the conclusion of the due diligence period, Arabian Food Industries Company (Domty) announced its plan to separate the company into two distinct entities. Arla Foods is therefore withdrawing its non-binding offer for the majority stake in the entire company and is instead exploring a potential agreement for the entity that will retain the dairy business, once the split has been completed. Both companies have agreed to maintain the positive and constructive dialogue we have had thus far as this process moves forward, said Kim Villadsen, Senior Vice President MENA, Arla’s Middle East division.

Read more about the cancelled acquisition agreement HERE

Foto: Arla Foods