The sale to a consortium of local fruit producers is unlikely to substantially lessen competition in the market, commission says.
The transaction, finalised after five years, clears the way for Tiger to fully exit the deciduous canned fruit market, while promoting local ownership and sustained competition. It transfers ownership of the Ashton canning factory and related operations for a nominal fee of R1. Tiger Brands has also committed R150m to establish a Community Trust as part of the deal. To address public interest concerns, the merged entity has agreed not to retrench any employees for three years and will invest capital into the business.
The buyer is a consortium made up of the Ashton Fruit Producers Co-operative, formed in 2020 by producers from Robertson, Ceres, Breede River and the Little Karoo, and a development finance institution focused on job creation, improving livelihoods and supporting the shift to net zero.
Langeberg and Ashton Foods employs more than 3,000 permanent and seasonal employees and is an “important contributor to the region’s economy”, Tiger Brands pointed out. Langeberg and Ashton Foods is part of Tiger Brands’ International segment. It produces canned fruit and purees for export markets (greater than 80% of the business) and supplies the Tiger Brands Culinary Business Unit with canned fruit under the KOO brand, which is sold in the Southern African markets.
As part of the sale, Tiger Brands and NewCo will enter into a contract manufacturing agreement for the purchase of canned fruit under its KOO brand.
Sources: Business Live, Bizcommunity
