PARIS, Dec. 17, 2001 (PRIMEZONE) -- Groupe DANONE (NYSE:DA) has signed a partnership agreement with the Egyptian Rachid group for the Egypt, Near and Middle East region, in respect of its three core businesses, Fresh Dairy Products, Biscuits and Beverages. The Rachid group, founded in 1977, is one of the main Egyptian players in the field of consumer goods.
The joint venture, in which Groupe DANONE initially holds a 51% interest, is to expand on a regional basis through acquisitions and greenfield projects. The partnership's first project will be the launching of biscuits operations in Egypt, under the LU brand. With 65 million inhabitants, 35% of whom below 15, Egypt represents a market of 80,000 tonnes of biscuits, offering a strong growth potential.
The Group has already developed a strong presence in this region, through investments in businesses with leadership positions: Morocco (Fresh Dairy Products and Biscuits), Tunisia (Fresh Dairy Products and Biscuits), Turkey (Fresh Dairy Products and Water), Israel (Fresh Dairy Products), Saudi Arabia (Fresh Dairy Products).
This new partnership confirms the Group's strategic interest for this region, where it has strongly expanded its presence in 2001 through several transactions: in Morocco, increase in Centrale laitiere shareholding from 20% to 29%, and partnership with ONA in respect of Bottled Water, and in Algeria, acquisition of 51% in Djurdjura, leader in Fresh Dairy Products.