Invictus snaps up Mozambican milling giant Merec: ADX-listed agro-food outfit Invictus Investment — a unit of Ghitha — has acquired Mozambique’s largest milling company Merec Industries ’ parent company Stratton Africa Holding, according to a press release (pdf). The size and terms of the agreement were not disclosed, but the company bought the shares from Amethis Fund II and Merec Financial.

The rationale: “The acquisition is expected to add significant scale and synergies between the two companies, increasing our consolidated revenues by over AED 1 bn (USD 272 mn) annually. It will also accelerate other investments and the expansion of our trading activities, fuelling substantial EBITDA growth, which is projected to more than double in 2025,” said Amir Daoud Abdellatif, CEO of Invictus. It also comes as the company looks to boost downstream and midstream segments, particularly in high-potential African markets, the statement added.

Tapping into the right markets: Mozambique is shaping up to be a prime market for wheat-based products, with a projected CAGR of 6% in wheat demand from 2022 to 2027, fueled by urbanization, population growth, rising incomes, and shifting consumer habits. Meanwhile, the pasta market has even stronger potential, with a forecasted 9.5% CAGR, as evolving dietary preferences drive a surge in consumption.

Not Invictus’ first rodeo in Africa: Invictus nabbed a 60% stake in Moroccan agriculture trader Graderco last year, as it looks to ramp up its acquisitions and JVs in North and East Africa, including Morocco, Algeria, Kenya, Tanzania, and Mozambique.

About Merec: The Mozambique-born company owns and operates milling facilities in Beira, Maputo, and Nacala with a total production capacity of 800k metric tons (mt) of wheat and corn flour annually, alongside processing facilities for 180k mt of pasta, biscuits, and animal feed per year. Its grain storage infrastructure includes silos with a capacity of 145k mt. Merec also owns a grain terminal at the port of Maputo.

Market reax: Ghitha’s shares were up 0.5% yesterday to settle at AED 24.8.

OTHER M&A NEWS-

Amass submits offer to subscribe to Osool ESB capital increase shares: Abu Dhabi-based Amass Investments has submitted a binding offer to subscribe EGP 100 mn (AED 7.3 mn) to the capital increase shares that will be issued by EGX-listed brokerage Osool ESB Securities Brokerage in a private placement, according to two separate filings to the exchange here (pdf) and here (pdf). The companies have yet to disclose the size of the planned capital increase, but the fair value price will be determined by an independent financial advisor.

Who owns what: It is worth noting that Osool Holding holds a 74.2% stake (pdf) in the listed company, while another substantial shareholder has an 8.6% stake. Only c. 25% of the company is on free-float.

A deposit in good faith: The Emirati firm has transferred the full amount they are willing to invest to Osool’s bank account, which will remain in escrow until Osool makes a decision to accept or reject the offer. Osool will hold a general meeting on Thursday to evaluate the offer.

Market reax: Osool EBS’ shares rose 20% to EGP 0.92 a share by the end of trading yesterday.

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