Dutch dairy company Royal FrieslandCampina is planning to acquire 51% stake in Pakistani-based Engro Foods for $460m.
The European dairy company has approached the Pakistan company to buy around 391 million shares from its parent company Engro Group.
"We have received a public announcement of intention to acquire up to 51 percent of voting shares of Engro Foods (EFOODS) by Friesman Campina International Holding BV", the company told in a the Pakistan Stock Exchange filling.
The deal has almost reached completion, with the due diligence process scheduled for completion within the next six to eight months time.
Following the acquisition, FrieslandCampina is also required to make a public offer to acquire at least 50% of the free float shares.
Engro Foods' product portfolio includes Olper's, Olper's Lite, Omore, Dairy Omung, Olper's Lassi and Tarang.
According to Bloomberg report, the acquisition is intended to help the Dutch company in gaining a footprint in Pakistan where growing middle class purchases processed milk and prefer boiling raw milk before consumption.
If the deal gets finalized, it is expected to boost Pakistan's foreign investment figures. In the current financial year, Pakistan's FDI was down by 57% to $336m as compared to the same period in 2015.
The country is seeking to boost its economy by 4.5% for the fiscal 2015-16 due to low oil prices, improvements in energy supply, and investment related to China Pakistan Economic Corridor (CPEC), accelerated construction activity and credit growth.