Royal FrieslandCampina has acquired a 51% stake in Engro Foods in conjunction with the World Bank Group’s Finance Corporation and Dutch development bank FMO.
Engro Foods, which is Pakistan’s second largest dairy producer, will remain as a significant shareholder and partner in the new company.
The total investment of €430 million is one of the largest private sector FDI investments in Pakistan in recent years.
«The cooperation with Engro Foods will accelerate our route 2020 strategy,» said Royal FrieslandCampina’s CEO Reolof Joosten. «This is a well organised and highly successful company where we will obtain a significant presence in the Pakistani dairy market in which a growing middle class is buying more processed milk. Engro Foods offer us a basis on which we can build further. This acquisition will contribute to Pakistan’s agricultural sector through knowledge transfer based on our established dairy development programme.”
The new company expect to take advantage of the conversion of the market from loose to packaged dairy consumption. This is expected to accelerate in the near future as a desire for higher quality milk as well as the increasing urbanisation.
Engro Foods will continue to operate under its own name as part of Business Group FrieslandCampina Consumer Products Asia.
Source: FarmersJournal
Link: http://www.farmersjournal.ie/frieslandcampina-acquires-majority-stake-in-engro-foods-in-pakistan-245242
