The value of the transaction was not disclosed.
The Competition Commission of South Africa has recommended that the Competition Tribunal approves the proposed transaction whereby Lactalis SA intends to acquire Cremora, with conditions.
✔️ Lactalis is a global dairy company with operations in 94 countries across the world. In South Africa, the company is active in the production and sale of dairy products, juice and other food products under the following brands: Parmalat, Bonnita, Melrose, Steri Stumpie, Purejoy, President, Galbani, EasyGest, Cabana and Aylesbury.
✔️ Cremora is a popular creamer brand that has been present in South Africa for more than 70 years and is currently manufactured at Nestlé’s plants in Babelegi and Potchefstroom, South Africa. Both sites will be acquired by Lactalis as part of the deal.
The primary target firm,Vista 24, is a newly formed special purpose vehicle that has been created to solely house the Cremora business which was carved out from Nestlé.
Vista 24, is controlled by Nestlé (South Africa) Proprietary Limited (“Nestlé ZA”). Nestlé ZA is ultimately controlled by Nestlé S.A., a company incorporated in terms of the laws of Switzerland.
“The Commission is of the view that the proposed transaction is unlikely to substantially lessen or prevent competition in any relevant market,”
said the agency in its press release.
To address public interest concerns, the merging parties shall not retrench any employees at the merging parties as a result of the merger. In addition, the Merging Parties will ensure the Target Firm will increase their procurement from historically disadvantaged persons (HDPs).
Nestlé revealed plans to sell its Cremora business in South Africa to dairy giant Lactalis in September, 2024.
“As we embark on this transition period, the welfare of our employees remains a top priority, with assurances that job security, remuneration and benefits will remain unaffected,”
said Nestlé’s head of external communications, Mota Mota.
Lactalis SA’s general manager, Herman Janse van Rensburg, added:
“This move aligns with our strategy of innovation and diversification of our product offering to cater to local consumer preferences.”
Source: Compcom.co.za, IOL
