The international packaging and paper group, which is listed in London where its shares were up 8%, said it would buy all the shares in National Company for Paper Products and Import & Export S.A.E (NPP) on a debt and cash free-basis.

With the acquisition Mondi is expanding further in the Middle East where it is already a leading producer of industrial bags, operating four plants in the region.

“The acquisition of NPP complements our network of plants in the growing Middle East region and provides us with a leading position in Egypt to grow our business and better serve our customers,” said Erik Bouts, Mondi’s chief executive of fibre packaging.

NPP operates one plant in Giza near Cairo serving mostly regional customers. Last year, it generated revenues of €29m (£25.5m).