The deal for Rashidi El Mizan is not yet complete, with some market watchers speculating other bidders, possibly including Almarai and the Savola Group, could make a counter-offer for the firm. Halwani Brothers said it would finance the purchase, intended to be 100% of the company, from cash reserves and a bank loan.
While Halwani Brothers did not put a value on the potential deal, current Rashidi El Mizan owner Qalaa Holdings said the confectioner along with its other food business Dina Farms were together worth around US$300m, when it announced plans to sell them in February.
Rashidi El Mizan is a market-leader in tahini and halva within Egypt, holding 68% of the tahini market and 58% of the halva market, according to figures from Qalaa Holdings. The firm also has a 15% market share of the Egyptian jam market.
A recent report from FMI suggested the Middle East and Mediterranean tahini market could be worth as much as US$1bn by 2020, with an average annual growth rate forecast at 5.7%. FMI listed both Halwani Brothers and Rashidi El Mizan among the market leaders for the sesame seed product.
Kellogg back for seconds
In other acquisition news, Kellog has been active in Egypt again, announcing a deal to buy fellow cereal maker Mass Food Group for US$50m in cash. This is its second Egyptian purchase this year, following its takeover of Bisco Misr in January.
“As the number one cereal company in Egypt, Mass Food Group is an excellent strategic fit for Kellogg. The combination of Mass Food Group's manufacturing capabilities, established local brands, and sales and distribution infrastructure, coupled with Kellogg's product innovation, international sales knowledge, iconic brands and marketing expertise, will help unlock the growth potential of the cereal category in the key markets of Egypt and North Africa,” said Chris Hood, president of Kellogg Europe.
Tamer El Bahay, vice president of Mass Food Group, said: “On behalf of the El Bahay family, I would like to say how proud we are to have been acquired by Kellogg Company, the world's leading cereal producer.
“With their know-how and expertise, we can emerge stronger together with a combined portfolio of brands to excite our consumers. We know the dedicated people of Mass Food Group, who have helped make this company a success, will continue to grow and develop under Kellogg's leadership,” he added.