The shareholders who own about 86 percent stake in the Egyptian sweet snack maker, Bisco Misr, have agreed to sell their shares to US cereal producer, Kellogg’s for $125 million. According to the Egyptian stock exchange, this was set to take full effect following the close of the bidding on Sunday.

Between August and September 2014, three companies; Abraaj, Kellogg Co and Savola Group, indicated interest in acquiring the snack maker. During this period, it was reported that Bisco rejected offers from Saudi Arabia’s Halwani Bros. and Juhayna Food Industries. Abraaj and Kellogg’s have remained front-runners for the company’s assets since then, with initial bids by both companies accepted by Bisco Misr.

Kellogg’s Wins Bidding War

Kellogg’s has, however, become the only surviving interest in the biscuit company, after UAE-based private equity firm, Abraaj, declared on Dec. 31, that it would pull out from a bidding war. The war caused the offer price to increase by over 20 percent.

The Arab Spring of 2011 which resulted in political turmoil, economic challenges and even violent conflicts, had a lasting effect on the Egyptian bourses as it drastically lessened investor confidence. But this recent commotion has seen the promotion of various activities including mergers and rights issues. This acquisition therefore signals the rebirth and growth of the Egyptian market’s international credit.

More acquisitions to come

“The Bisco Misr deal will not be the last in Egypt’s food sector… We see more acquisitions in the coming period to take advantage of strong domestic demand in Egypt,” said Mohsen Adel of Pioneers Investment Management.

Egyptian confectionery maker, Bisco Misr is one of the leading confectionery business in North Africa. The company currently has three facilities in Egypt, where it produces about 100 different brands of biscuit, cereal and cake.