Mubasher: Danish dairy group Arla Foods has reached a deal with US Mondelez International to acquire its processed cheese business in the Middle East region.

The acquisition gives the European dairy giant full ownership of a cheese production site in Bahrain, along with providing Arla with the opportunity to more expand the company’s branded cheese production in the region, according to an official a statement said.

Since 2010, Arla has more than doubled its sales organically across the Middle East and North Africa (MENA), the Danish firm’s largest market outside Europe.

Arla Foods said it projects its retail and foodservice sales in MENA to grow EUR560 million this year.

Commenting on the deal, Arla CEO Peder Tuborgh said, “This acquisition is a gamechanger for our MENA business. We have an established and growing business in the Middle East and know our consumers and customers well in this part of the world. As such, this deal is an excellent strategic fit for us as it enables us to both expand our branded presence in the cheese category and secure the local production capacity we have been looking for to continue to grow our business.”

The agreement is expected to take effect by the end of May 2019, while its value was not disclosed.