Saudi Arabia’s Arrow Food Distribution has outbid Pioneer Holdings making an offer to acquire Egypt’s Arab Dairy Products. Pioneer already owns 25% of the Egyptian cheese making company but had made an offer to buy 60.2% at 56 Egyptian pounds (US$7.83) per share. Arrow Food Distribution followed, offering 57.12 Egyptian pounds (US$7.99) per share for a minimum 51% stake up to a maximum 100% ownership. Arrow Food Distribution is a manufacturer, distributor, and retailer of foods across the Middle East, and states that Arab Dairy would benefit from its extensive networks and would gain access to additional Middle Eastern markets as a result of the deal. However, Kaled El Tayeb, general manager of Pioneer’s investment committee, voiced expectations that Pioneer’s bid would be accepted and stated that it plans to restructure Arab Dairy and introduce the company to new markets. Arab Dairy will decide on a course of action on November 6th.
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