Lactalis, the world’s third largest dairy business, has agreed to acquire Yildiz Holding’s Ak Gida dairy unit for an undisclosed amount. Subsequently, Yildiz Holding and other AK Gida shareholders have announced that a planned initial public offering scheduled for May 6 – 8 has been cancelled. After the deal is closed, Yildiz’s stake in Ak Gida will decrease from 33% to 10%.
If the deal is approved by the Turkish Competition Authority, Lactalis will gain entry to Turkey’s large, and growing dairy market with control of an 80% majority stake in Ak Gida, which produces UHT milk, feta and cheddar cheeses, and yogurt.
Last year, Turkey’s dairy sector saw sales reach US$3.989 billion according to Euromonitor, with cheese sales of US$1.868 billion, and yogurt sales of US$1.053 billion, with sour milk products (laban) accounting for approximately 75% of total sales. By 2019, Euromonitor forecasts that Turkey’s total dairy sales will grow to be US$5.534 billion.
“This is a country Lactalis is not present in. We would be very happy to have a presence in this very important market,” Lactalis spokesperson, Michel Nalet tells DairyReporter.com.
As recently as March Lactalis was involved in a drawn out bidding war with Pioneers Holding to acquire Egyptian dairy company, Arab Dairy, but Lactalis rejects the notion that the two deals are related in any way.
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