German group in first foreign takeover

28 March 2002

German detergents group Henkelon 21 March announced that it had acquired a 60 per cent stake in local detergent manufacturer Pakvash. It is the first time that a foreign company has been able to buy a majority share in a local company through the Tehran Stock Exchange (TSE).

Pakvash is one of three Iranian detergents companies serving the local market. The manufacturing facility of Pakvash, which was established in 1975 and today employs about 1,200 people, is located 120 kilometres south of Tehran and covers an area of about 75,000 square metres. The plant produces powder detergents, liquid products, soaps and scouring agents.

The deal is Henkel's second transaction in the Middle East this year, following the company's decision to expand its Egyptian business by investing £E 50 million ($11 million) over the next three years. Henkel holds a majority stake in Egypt's Port Said Detergents & Chemical Industriesventure, which produces a variety of detergents (MEED 22:2:02).

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