French dairy giant Danone is reportedly seeking to buy the interest in Kenya’s largest milk processor, Brookside Dairy, held by Dubai-based investment company Abraaj Group. The group’s African Fund invested US$18.7 million in Brookside in 2009. One other unnamed international company is also vying for the interest. Brookside is Kenya’s largest milk processor processing more than 500,000 liters of milk per day with the capacity to process 1 million liters per day,and controlling 44% of the processed milk market in Kenya. Brookside has recently taken over market rivals SpinKnit Dairy, Buzeki Dairy, Ilara, and Delamere, and has signed an agreement which grants it control of operations of Limuru Dairy for the next ten years. Outside of Kenya, Brookside plans to acquire 20% of Ethiopia’s Elemtu Dairy and is building a milk processing plant in Nigeria next year. Danone has a presence in 35 African countries marketing fresh dairy and baby food products. The company has expressed plans to expand its presence in Africa over the next ten years.
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