Mubasher TV
Contact Us Advertising   العربية

U.S. Kellogg denies London plant shutdown

U.S. Kellogg denies London plant shutdown
BiscoMisr
BISM
0.00% 86.00 0.00
By Ahmed Allam:
Cairo-Mubasher Exclusive: Eng. Amr Farghaly, Deputy Chairman for Central and Eastern Europe and MENA at U.S.-based firm Kellogg, said, in an interview with Mubasher that his company has not shut down any of its plants in London or in any other place worldwide.
It was reported on Monday that Kellogg decided to shut down a London-based plant within eight days due to the increase in operating costs.
Kellogg is continuing with its operations and seeks to add additional production capacities to fulfill the growing demand for its products, the official said.
Farghaly had told Mubasher earlier that his company is not considering forming an alliance to bid for the takeover of Egypt’s snacks maker Bisco Misr.
The official stressed that, upon winning the deal, the Egypt-based company will move to a new period of success globally. He added that Egypt’s proximity to other export markets will create huge export potential for the company.
Farghaly also noted that Bisco Misr brand name will stay unchanged.
Kellogg has an ambitious plan to take the lead via well-defined strategies, the official said, declining to describe such strategies due to competition.
He said the Egyptian market has strong potential to become a key market in the Middle East and to lure more investments.
It was reported earlier that UAE’s Abraaj was partnering with Aujan Industries for the bid to take over Egypt’s cake and biscuit maker.
The Egyptian Financial Supervisory Authority (EFSA) had extended the period for the takeover bid made by Sphinx Obelisk BV and Bisco Invest Trade and Investment, affiliates of UAE’s Abraaj Group, for Bisco Misr to December 24 to match the period of rival bidder Kellogg.
Farghaly said earlier that the takeover would be a ‘perfect gateway’ for his company to establish a footprint in the Middle East.
Speaking on the sidelines of a press conference, the official said Bisco Misr deal is in line with Kellogg’s strategy to become a leading snacks producer and will come as part of its efforts to foray into emerging markets.
Egypt’s market regulator had approved Kellogg request to raise its bid for Bisco Misr to EGP 82.2 per share. It had previously approved a request from Sphinx Obelisk BV and Bisco Invest Trade and Investment to raise the price of their mandatory tender offer for Bisco Misr to EGP 80.58 per share.
Translated by Sayed Abdel Rahman
Photo Credit: Arabianeye-Reuters