Buyout firm Abraaj Group said it withdrew from bidding for Bisco Misr after U.S. rival Kellogg Co. (K) submitted a higher offer for the Egyptian biscuit maker.
The U.S. food producer offered 89.86 Egyptian pounds a share for Bisco Misr on Dec. 24, the same day that Abraaj had offered 88.09 pounds a share. Kellogg’s offer values Bisco Misr at 1.03 billion pounds ($144 million).
The private equity firm’s decision ends a two-month takeover battle in which the offer price has increased about 22 percent from Abraaj’s initial bid of 73.91 a share in November. Bisco, which earlier turned down offers from Juhayna Food Industries and Saudi Arabia’s Halwani Bros., owns three factories, where it produces biscuit Luxe and a variety of cakes and wafers.
Abraaj said in an e-mailed statement that the bidding process “clearly validates growing investor interest in Egypt,” and that it expects “significant activity in the country over the coming months given Egypt’s attractive growth potential and its recent positive economic traction.”