Cairo – Mubasher: Egypt-based Zahran Group has signed an agreement with France’s Groupe SEB on the merger of small electrical appliances and cookware businesses in Egypt.

The merger is subject to the approval of the Egyptian regulatory authorities, Beltone Financial Holding highlighted in a statement, adding that consolidation is expected to be closed in the second quarter of 2018.

The French group aims at reinforcing its local manufacturing footprint in Egypt in a bid to serve the local and export markets, according to the statement.

Given that Beltone is Zahran Group’s financial advisor.

In 2013, Groupe SEB set up a 75%-controlled joint venture with Zahran Group under the name of Groupe Seb Egypt in Borg El-Arab near the coastal city of Alexandria to produce and sell small electrical appliances.

Both firms decided to form a new entity, Groupe SEB Egypt Zahran, in which Groupe SEB owns 55% stake, while Zahran has the remaining 45% stake.

This new company unites the two business activities in an effort to boost sales in Egypt, capitalising on the long-standing relationship, reinforcing Groupe SEB’s production base in Africa and the Middle East.