Arla Foods’ recent decision to withdraw its non-binding offer to acquire a majority stake in Domty has sparked significant interest in the dairy industry. The offer, valued at USD 176 million (EGP 8.9 billion) at EGP 31.48 per share, was initially made in October 2024 with the intention of delisting Domty from the Egyptian stock exchange post-acquisition. However, Domty’s board decided to split the company into two entities: one for dairy and juice, and another for bakery products, leading Arla to shift its focus to the dairy segment. This move has raised questions about the future of the deal and the implications for both companies.
Arla’s Initial Offer and Domty’s Response
Arla Foods submitted a non-binding offer in October 2024 to acquire a majority stake in Domty. The plan was to delist Domty from the Egyptian stock exchange post-acquisition, but Domty’s board had other plans. On April 14, 2025, Arla withdrew its offer after Domty decided to split into two entities: one for **dairy and juice**, and another for **bakery products**. Arla expressed continued interest in the dairy segment and will pursue talks after the demerger. I’m excited to see how this will play out, especially with the rise of lab-made milk in the market.
Domty’s Strategic Split and Business Focus
Domty’s board approved a demerger to create separate entities for **dairy/juice** and **bakery**, aiming to enhance operational efficiency and unlock shareholder value. In 2024, Domty posted EGP 9.2 billion ($180.4 million) in sales, with net profit rising to EGP 501.2 million. The **bakery division** was the most profitable, with a gross profit margin of 25.5% and segment sales of EGP 1.9 billion. Domty’s main products include white cheese, mozzarella, milk, juice, and baked goods like bread and sandwiches. For those interested in exploring more about the dairy industry, I recommend checking out upcoming dairy competitions.
Some of Domty’s key products and their corresponding sales figures are:
* White cheese
* Mozzarella
* Milk
* Juice
* Baked goods like bread and sandwiches
Arla is now exclusively interested in the **dairy business**, excluding the bakery segment. This move is likely driven by Arla’s global strategy to expand its dairy operations.
Timeline of the Deal and Regulatory Process
The timeline of the deal is as follows:
* October 2024: Arla submits a non-binding offer for a majority stake in Domty.
* January 2025: Egypt’s Financial Regulatory Authority grants a 60-working-day due diligence extension.
* April 13-14, 2025: Domty announces demerger; Arla cancels its offer for the full business but shifts focus to the dairy entity post-split. Those looking to submit a dessert recipe can do so on our site.
The potential acquisition remains subject to regulatory approval, due diligence, and agreed terms. I’m keeping an eye on how this deal unfolds, especially given the current state of the US dairy industry.
Arla’s Global Strategy and Domty’s Market Position
Arla is expanding globally, recently announcing a merger with German DMK Group to create Europe’s largest dairy cooperative, with pro forma revenue of €19 billion ($20.75 billion). Domty’s ownership structure includes Expedition Investments (32.91%), International Dairy Investment (24.61%), and Trevi Holding (11.53%). Domty’s sustainability initiatives are detailed in its Sustainability Report. Both companies aim for efficiency, regional leadership, and value creation. For more information on Arla’s global strategy, you can visit their official website.
Quotes and Future Outlook
“Arla Foods now withdraws the non-binding offer made for the share majority of the entire business and instead explores a potential deal for the entity that owns the dairy business once Domty has successfully completed the demerger.” — Kim Villadsen, SVP for Arla’s business in the Middle East and North Africa. “Arla still has the desire to explore a potential entry to the promising Egyptian market.” — Letter to Domty MD Mohamed Omar El Damaty. As the dairy industry continues to evolve, I expect to see more **strategic partnerships** and **innovations** in the market, such as the growth of the plant-based dairy market. You can learn more about Domty’s business on their official website.
If you’re interested in learning more about Arla’s dairy protein products, be sure to check out this article for more insights. You can also explore our business directory to discover local dessert shops and other businesses related to the food industry.