US-based Kraft Foods has entered into an agreement to gain full control of Morocco's leading cookie firm Bimo from National Investment (SNI), an investment vehicle owned by Morocco's royal family, for MAD1.31bn ($151m).
Under the agreement, SNI will sell its 50% stake in Bimo, to increase Kraft Foods stake in the company to 100%. The deal, which is subject to customary regulatory approvals, is likely to be to be finalized within six months.
SNI will use the proceeds from the sale lower debts and fund future investment, reported Reuters.
Kraft Foods said that the deal is part of a plan to strengthen its presence in the developing markets.
Bimo, established in 1981, has two production facilities, and it reported sales of MAD831m ($95.67m) in 2011. The company, which has a workforce of 1,400, holds a market share of 13% in cookie sales.
However, its market share has been declining over the past few years due to local competition and free trade deals, primarily between the European Union and Turkey.
