Case study: Acquisition of Pakistani companies by international giants.

Two multinational giants acquired 2 Pakistani companies in just the last week alone as part of their
growth strategy to establish presence in Pakistan.
Dutch dairy giant Friesland Campina acquired 51 % of Karachi-based Engro Foods Limited, the second
largest dairy producer in Pakistan. In the same week, Turkey's Arcelik announced purchase of Dawlance,
Pakistan's market-leading home appliance maker. Both cited opportunity for double-digit growth in the
emerging market as the main reason for their acquisitions.
Pakistan's Emerging Market Upgrade
Earlier in June, Morgan Stanley announced its decision that Pakistan's MSCI shares index will be
upgraded from frontier to emerging market status. Pakistan's Karachi Stock Exchange KSE100 Index has
rallied 14% in 2016, making it Asia's best performing market so far this year in anticipation of the MSCI
announcement.
Pakistan Dairy Market
Pakistan is the third largest milk-manufacturing country in the world, with 38 billion liters on an annual
basis, according to Retail Detail of Europe. FrieslandCampina wants to take advantage of the shift to
packaged dairy products in Pakistan: not even 10 % of milk consumption comes from processed and
packaged milk in Pakistan, but FrieslandCampina expects that to change in the near future
Thanks to this well-organized and very successful company, we have obtained a strong position in the
Pakistani dairy market. A growing middle class is switching to processed and packaged milk in Pakistan
and Engro Foods provides a platform to build on. This acquisition will contribute to the value proposition
we want to give our member dairy manufacturers. We will also help develop the agricultural industry in
Pakistan with our extensive knowledge on the dairy manufacturing process and thanks to our Dairy
Development Programme", CEO Roelof Joosten said.
To tap into the Pakistani market, FrieslandCampina is buying 51% of Engro Foods at an estimated price
of $448 million, a securities filing said on Monday. Topline Securities said Engro Corporation will
generate cash of around Rs. 47 billion, part of which will most likely be invested in energy-related
projects with a higher rate of return, according to a report in Pakistan's Express Tribune newspaper.

Case study: Acquisition of Pakistani companies by international giants.

Home Appliance Demand in Pakistan

Arelik AS Group has quoted that favorable economic conditions has motivated them to acquire
Dawlance. Arelik will buy out Dawlances shares by the end of 2016, after getting approval from
regulatory body following the set procedure of acquisition. This deal will further increase the confidence
of foreign investors in Pakistani companies; Dawlance is the third Pakistani company listed in Karachi
stock exchange that has been acquired by a leading foreign company in 2016 a positive sign for
Pakistani firms.
Dawlance, with a wide range of its home appliances including air conditioners, refrigerators, fans,
washing machines, is a market leader in Pakistan. Owned privately by Suleiman Dawood, it has 16
regional offices with up to 2,000 sales points across Pakistan. In 2015, the company reportedly enjoyed
$41 million of total sales. It should be mentioned that Dawlance is a market leader in Pakistan, given its
brand of home appliances that include air conditioners, refrigerators, fans, washing machines and many
more. The acquisition will reportedly be done by the end of 2016 after Arcelik gets approval from the
regulatory body, following the receipt and closing conditions as required.
Pakistans leading home appliance maker Dawlance Group has been acquired by a Turkish company
Arelik for worth $258 million. Dawlance Group has signed an acquisition deal of worth $258 million
with Turkeys Arelik AS Group worlds sixth largest home appliance makers. It seems Pakistani
companies are catching the eye of foreign investors. Dawlance Group from Pakistan has signed an
acquisition deal worth $258 million with Turkeys Arelik AS Group. The Turkish company has cited
favorable economic conditions for the deal. Dawlance is Pakistans leading home appliance maker,
privately owned by Suleiman Dawood. It has become the third Pakistani company that has been acquired
by a foreign company in 2016 alone. Dawlance has reportedly enjoyed $41 million in total sales in 2015
alone. The Turkish company Arcelik is the worlds sixth largest home appliance maker. Its move to buy
out Dawlance shares will undoubtedly expand the Turkish companys footprint globally. 3 production
plants in two different locations will be added to Arceliks global production network, including
Dawlances manufacturing plant in Hyderabad. Dawlance currently has 16 regional offices all across
Pakistan with up to 2,000 sales points.

Turkish company Arelik wants a global expansion of its business and as per initial details, three
production plants will be added to Arceliks global production network though this deal, also including
Dawlances manufacturing plant in Hyderabad.

Case study: Acquisition of Pakistani companies by international giants.

Pakistan's $3 billion home appliance market is experiencing double digit annual growth. It has attracted
the attention of China's Haier, a multinational giant that recently acquired American General Electric's
home appliance business. Haier has 8 industrial complexes, two of which are foreign--one in the United
States, and one in Pakistan, according to Xiaofei Li, the author of "China's Outward Foreign Investment:
A Political Perspective". In these Special Economic Zones, Haier does localization to suit the needs of the
consumers. For Pakistani market, Haier especially designed a washer that can hold 15 long gowns at one
time. There are many more such Special Economic Zones envisaged as part of the CPEC (China-Pakistan
Economic Corridor). It will be essentially an industrial corridor spanning almost the entire length of the
country from the Arabia sea coast to the Karakorams where it enters China via the Karakoram Highway
(KKH), the word's highest paved road.
Pakistan's privately-held Dawlance is also a major player in Pakistan's home appliance market. It is
Pakistan's leading refrigerator and microwave brand, No. 2 air conditioners and No. 3 in the laundry
category. In 2015, it reported $221 million in revenue and $45 million in EBITDA (earnings before
interest, taxes, depreciation and amortization), according to Nikkei Asian Review.
Pakistan is the sixth most populous country in the world with a population of 200 million people. In
particular its young population and increasingly growing economy make it an enticing prospect as a
market in the region. With the acquisition of Dawlance in Pakistan, Arelik will employ a total workforce
of 30,000 worldwide and will have a global production base of 18 manufacturing facilities including
Turkey, Romania, Russia, China, South Africa and Thailand. Our acquisition is also a powerful example
of south-south cooperation, representing a technology and know-how transfer between developing
countries, said Fatih Ebiliolu, the head of the Consumer Durables Group of Ko Holding that controls
Arcelik, according to Turkey's Hurriyet Daily News.

Summary:
Smart money is starting to flow into Pakistan again as the world recognizes the country's tremendous
economic potential as a growing emerging market. Investors and businesses are looking to profit from
expanding Pakistani economy backed by growing middle class consumption and rising Chinese
investments in energy and infrastructure.