Chakib Alj moves to take over Forafric Maroc

Morocco’s Competition Council announced Friday it had received formal notification of a proposed takeover of Forafric Maroc SA by Cap Holding SA, the industrial group run by Chakib Alj, one of Morocco’s most prominent business figures.

The transaction, if cleared, would give Cap Holding exclusive control of 68% of Forafric Maroc’s share capital and voting rights. Interested third parties have until March 16 to submit observations to the regulator.

Forafric Maroc is the Moroccan arm of Forafric Agro Industries, a Nasdaq-listed agro-industrial group that specialises in wheat milling and the production of flour, semolina, pasta and couscous. Its brands include Tria and Maymouna. Beyond Morocco, the group has operations in Burkina Faso, Mali and Angola. It listed on the Nasdaq in 2022 as part of an ambitious regional expansion push, but that growth came at a cost. The company has been weighed down by heavy debt and declining operational performance ever since, and its financial difficulties have become a sensitive issue in Morocco’s food supply chain, where flour milling touches directly on bread prices and food security policy.

Alj’s move to take control of the company has been in the works for months. In February, he was already shipping grain into Forafric mills in Meknes and Marrakesh to restart production ahead of Ramadan, a sign that he was preparing to assume operational responsibility before the regulatory process was complete.

Alj built his fortune in flour milling. After studying at Columbia University in the United States, he returned to Morocco in 1987 and took over the Société Nouvelle des Moulins du Maghreb, a century-old leader in the sector. He expanded steadily from that base, launching additional milling operations under the Moulin de Berrechid, Moony, Matahine Bab Mansour and GSB brands. Over the following decades he diversified into packaging through Multisacs, poultry farming and animal feed under Alf Mabrouk and Cicavi, transport and logistics through ACTL, and renewable energy via Adiwatt Maroc. In 2022, he added the Renault vehicle distribution network in Morocco to the Cap Holding portfolio after that deal also cleared the Competition Council.

Cap Holding today employs more than 3,500 people across its businesses. Alj also chairs CGEM, Morocco’s main employers’ federation, a position he has held since 2020 and was re-elected to in 2023.

The acquisition of a 68% controlling stake in Forafric Maroc would be Alj’s most significant transaction to date, consolidating his position as one of the dominant players in Moroccan grain processing. The deal is framed as part of a financial restructuring of the Forafric group, which needs new ownership and capital to stabilise its balance sheet and restore confidence among lenders and suppliers.

The Competition Council has not yet ruled on the notification. Its approval is required before the transaction can be finalised.