Sector News

Kellogg outbids Abraaj for third time in race for Egypt’s Bisco

December 18, 2014
Food & Drink
(Reuters) – Breakfast cereal maker Kellogg Co has again raised its bid for Egyptian snack maker Bisco Misr, outbidding private equity group Abraaj for the third time and snatching the lead in a $140 million takeover battle.
 
Kellogg said on Thursday it would improve its offer to 86.36 Egyptian pounds per share, hoping to secure a brand that will give it a high profile presence in the Arab world’s most populous nation.
 
UAE’s Abraaj Investment Management, the Middle East’s largest private equity firm, has been battling Kellogg for the Egyptian firm since last month, after the U.S. group scuppered its deal to snap up Bisco.
 
Abraaj had increased its own bid only this week to 84.66 pounds, topping a previous Kellogg offer.
 
Food is seen as a potentially lucrative sector in Egypt, with its growing population of 86 million, and Bisco Misr is a well-known brand.
 
Cairo has seen a flurry of mergers and share issues in recent months, signs of renewed investor confidence after the political and economic turmoil that followed popular uprisings in 2011.
 
Egypt’s government this year launched a raft of reforms aimed at luring back foreign investors and shoring up growth while cutting a ballooning deficit.
 
While shareholders with 56 percent of Bisco Misr had agreed to sell to Abraaj at 73.91 pounds per share, Kellogg’s bids have forced the private equity firm to return with higher offers.
 
Abraaj, which has about $7.5 billion of assets under management, targets high-growth sectors in emerging markets.
 
($1 = 7.1500 Egyptian pounds) (Reporting by Maggie Fick; Editing by David Clarke and Clara Ferreira Marques)

comments closed

Related News

October 10, 2021

Tetra Pak and Poka combat food production waste with digital tools and training

Food & Drink

Tetra Pak is embarking on a new strategic collaboration with connected factory worker platform Poka to accelerate zero waste processes in food manufacturing plants. By reducing downtimes, Tetra Pak aims to contribute to the UN Sustainable Development Goal 12: Responsible consumption and production.

October 10, 2021

Ripe for change? Spanish Royal Decree targets plastic fruit & veg ban as industry decries food waste risks

Food & Drink

Stipulated in a Royal Decree on packaging and waste, the measures will also seek to restrict the use of plastic bottles for water, according to sources revealed by national news organization El País. If ratified, the rulings will impact small retailers and supermarkets alike.

October 10, 2021

Asahi names PepsiCo’s Danny Celoni as next Carlton & United Breweries CEO

Food & Drink

Celoni will join Asahi Beverages from PepsiCo, where he is CEO of the company’s Australia, New Zealand and South Pacific business. He will assume the CUB chief executive role in February, succeeding Peter Filipovic.

Send this to a friend