Breakfast cereal producer Kellogg plans to acquire a majority stake in Egyptian confectionery-maker Bisco Misr for an undisclosed amount.
The company is eyeing around 51% stake in Bisco Misr, following a due diligence.
Bisco Misr, also known as The Egyptian Company for Foods, manufactures and sells baked goods and confectionery in Egypt.
Naeem Brokerage Research director Allen Sandeep said: "Whoever wants to get exposure into this market, it would like to look at someone like Bisco Misr.
"With a market that has a population of 90 million, you look at any sub-segments within the consumer and food sectors and there is massive potential."
Bisco Misr currently operates three production plants, one in Cairo and two in Alexandria. It reported around $769,000 in profits for the second quarter compared with 13.4 million pounds a year earlier.
It earlier rejected takeover bids from Juhayna Foods and Halwani Bros.
Image: Bisco Misr offers biscuits, wafers and other seasonal products. Photo: courtesy of Mister GC / FreeDigitalPhotos.net.
