US food giant Kellogg’s purchase offer for Egypt’s BiscoMisr is worth EGP 945 million (US$132.1 million), according to the company’s Vice President of Central and Eastern Europe, the Middle East, and North Africa Amr Farghal.
Farghal said during a press conference on Sunday Kellogg’s hopes to purchase a 51% stake in BiscoMisr shares to expand the company’s products and launch them on the international food market.
The distribution will occur through a large network across the Middle East and North Africa, he added.
He said: “We do not aim to lay off company workers, especially since they were able achieve strong earnings during the last three years.”
The company, according to Farghal, will work on increasing the quality of existing BiscoMisr products if the purchase is agreed upon, adding that Kellogg’s is the second largest snack company in the world.
Farghal said: “We care about quality to the maximum degree and there is not a single branch of the company around the world that has been closed down.”
He declined to comment on the amount of investments Kellogg’s will inject into BiscoMisr if the purchase offer is agreed upon.
Farghal also declined to answer questions regarding the company’s position on investing in Egypt in the event that the offer is rejected.
Kellogg’s sales reached $14.8 billion last year, while investments totalled $1.3 billion.
Farghal said the company does not use any genetically modified foods in Europe and the Middle East, adding: “It depends on market regulators, and some countries and markets allow it.”
He also added that “regulatory authorities looked at all Kellogg’s shareholders and there was no reason not to allow the purchase of BiscoMisr shares”.
The company aims to distribute 1 billion breakfast meals in the markets which it operates for free.
Kellogg’s products are available in 180 countries, and employs approximately 30,000 employees distributed around various markets.