M&A-

#1- Danish dairy giant Arla Foods delayed its plans to submit a mandatory tender offer (MTO) to acquire EGX-listed dairy company Domty, it said in a letter (pdf) to Domty and the FRA. Arla cited its inability to wrap up legal, financial, and technical due diligence while Domty was in the midst of a spin-off process.

REFRESHER- Domty lined up board approval for a demerger late last week, tapping Matouk Bassiouny and Hennawy as counsel for the process. This came amid reports that it wants to exclude its bakery unit from Arla’s EGP 8.9 bn acquisition bid for up to 100% of Domty.

On hold, but not off the table was the message, with Arla reaffirming its interest in the Egyptian market and saying it’s keeping lines open with Domty with plans to re-engage a potential offer for the spun-off dairy business — assuming due diligence checks out.

#2- UAE-based NAS Investment Holding is on track to become the majority shareholder in EGX-listed phosphate exporter Egyfert, after receiving approval from the Egyptian Competition Authority. NAS plans to raise its stake from 32.4% to up to 90% through a transaction valued at EGP 522.5 mn, which puts Egyfert’s total valuation at EGP 912 mn, according to an authority statement. The offer price is set at EGP 95.0 per share, representing a 22.88% discount to yesterday’s closing price.

ENERGY-

#1- Eni is in talks with a Baker Hughes-led consortium to deploy USD 300-400 mn to boost output from its Zohr concession through the drilling of two new wells, Al Mal reported, citing unnamed senior sources in the sector. The sources did not name any of the companies that will be joining the Nasdaq-listed US energy company.

The project’s first well is expected to go online at the end of 2026 and the second is forecast to kick off production near the start of 2027.

All in all, the Italian energy giant has earmarked EUR 8 bn in investments for the country’s energy sector over the next four years as part of a wider EUR 24 bn plan across North Africa, CEO Claudio Descalzi said earlier this month. “Internal demand in these countries — because of demographic growth — is increasing at about 7-8% every year, this means they need gas … they need investment,” he said.

#2- Cheiron Energy aims to kick off operations at West El Burullus gas field by 3Q 2025, with the goal of adding 50 mn cubic feet per day (mcf/d) to its production output, an unnamed company official told Al Arabiya. The move is part of the firm’s target of raising gas production 60 mcf/d throughout the year to a total of 300 mcf/d.

SMES-

Egypt Post’s investment arm Post for Investment (PFI) plans to set up a financing entity for SMEs, PFI CEO and Managing Director Ahmed Ali Abdelrahman told Al Mal’s CEO Level program (watch, runtime: 1:54:22). The company would focus on factoring, among other services, Abdelrahman said, adding that the plan is part of the company’s strategy to expand its coverage to all non-banking financial services.

PFI is also close to launching a company for registered mail services. The company will digitize mail into a comprehensive electronic platform, with a focus on streamlining communications for corporate general assemblies, including invitations, notifications, and announcements. PFI will hold a minority stake in the company, but will be a majority shareholder when added to Egypt Post’s investment in the company.

TRANSPORT-

The National Egyptian Railway Industries Company (Neric) will manufacture 21 trains for the Alexandria Metro under a EGP 15 bn contract, two sources familiar with the matter told Asharq Business. The National Authority for Tunnels will be footing the bill.

Neric was also tapped to produce 40 metro trains for lines 2 and 3 of the Cairo Metro in partnership with South Korean railway equipment manufacturer Hyundai Rotem under a USD 656 mn contract inked in 2022. Unconfirmed reports last month pencilled in mid-2025 for the start of production and 2026, with the first seven trains to be delivered in 2026.

LOGISTICS-

Multimodal transport operator G3A is planning to raise freight tariffs by 12% on Egypt’s railway network following fuel price hikes over the weekend, unnamed government sources told Al Borsa. However, the revised rates will remain lower than those charged by road hauliers to maintain G3A’s competitive edge, the sources said. The new pricing is expected to be announced next week after a review by the company’s pricing committee, which is evaluating current maintenance, spare parts, and fuel costs.

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