PepsiCo, More Negotiate to Acquire Safi

Major companies, including PepsiCo, Coca-Cola, Nestle, and Al-Mansour, are negotiating with Egypt's sovereign fund to acquire the National Co. for producing natural water (Safi), sources told Al-Borsa Newspaper.

Safi is owned by the National Service Products Organisation (NSPO).

The sources added that the deal is expected to be completed during the first quarter of 2021, once the due diligence examination is completed.

Al-Mansour Holding Company for Financial Investments is in the lead after it had crossed a long way in the negotiations, according to the sources.

The company produces "Hayat" Mineral Water, while PepsiCo, Coca-Cola, and Nestle respectively produce "Aquafina", "Dasani", and "Nestle" bottled water.

El Garhy Steel Group is also participating in the negotiations.

Safi, in addition to the National Petroleum Services Company, is the first two companies for the National Service Projects Organization to be offered to the private sector for the first time in Egypt's history.

Private sector investors, both Egyptians and foreigners, will be able to own up to 100%.

Last week, Hala El Said, the Minister of Planning and Economic Development and Chairperson of the fund, described the move as a "historic shift in how the Egyptian economy is structured."

This comes in an attempt from Egypt to lure investors to its untapped assets.