According to market analysts, the full takeover would be an important step in Arla's strategy to strengthen its presence in the Middle East and North Africa, a region where demand for dairy continues to grow annually. The publicly traded company has about 4,000 employees and two production sites in Egypt.
Domty is one of the largest producers of dairy and bakery products in Egypt and is known for its cheese products, which align well with Arla's portfolio. According to Arla, the Egyptian dairy market offers significant potential due to the increasing demand for sustainable, high-quality products.
The acquisition fits within Arla's broader strategy of investing globally in sustainability, product innovation, and expansion of operations in emerging markets. The Middle East and North Africa represent Arla's largest trading area outside Europe. The expansion into Egypt is a logical step toward better serving all consumers in this region, says Arla.
Arla has positive expectations for this acquisition due to Domty's strong market position in Egypt and the wider region. According to Arla, this move will also allow them to benefit from the expected growth of the middle class in Egypt. This is accompanied by increasing urbanization and higher incomes, leading to different eating habits and a greater preference for brands with high-quality and sustainable products.