LVMH’s private-equity unit said to seek stake in Saudi’s Bateel

Confectionary producer Bateel has a presence in 14 countries across Africa, Europe, Asia and the Middle East, including the UAE.

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LVMH Moet Hennessy Louis Vuitton’s private-equity arm is in talks to acquire a stake in Saudi Arabian gourmet confectionery producer and restaurant chain Bateel, four people with knowledge of the matter said.

L Capital, backed by LVMH Group and billionaire chairman Bernard Arnault’s family holding company, is seeking a minority stake in the Riyadh-based firm, the people said, asking not to be identified as talks are private. Bateel has a presence in 14 countries across Africa, Europe, Asia and the Middle East, including the UAE.

Accelerating economic growth and a rising population in the Gulf region is driving increased investment in the consumer industry from companies and private-equity firms. KKR & Co is teaming up with Dubai-based Fajr Capital to bid for a 25 per cent stake in Azadea Group, the franchise operator of clothing chain Zara in the Middle East, people with knowledge of the matter said earlier this month.

L Capital, based in Paris, was formed in 2001 and focuses on investments in retail and luxury industries among others.

Ata Atmar, managing director of Bateel International, declined to comment when contacted by phone. L Capital didn’t return calls seeking comment.

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