Mondelez International Inc. said Dec. 13 that it agreed to sell its Kraft-branded cheese business in the Middle East and Africa region to privately held Danish dairy company Arla Foods.
Financial terms of the deal were not disclosed.
The proposed transaction includes Mondelez's cheese manufacturing facility in Bahrain, in addition to the food company's cheese products offered in Middle East and Africa markets under the Kraft brand.
However, the Philadelphia cream cheese brand, Jocca cottage cheese brand and a newly opened biscuit manufacturing site in Bahrain will remain under Mondelez's ownership. The new factory will start producing Tang powdered beverages as well, the company added.
The sale is expected to be completed in the next few months, subject to regulatory approvals.
Mondelez said the deal would support its strategic plan to focus on its faster-growing snacks categories including chocolate, biscuits, and gum and candy. Products in those categories include Cadbury Dairy Milk chocolate and Oreo cookies.