South Africa’s Competition Commission has endorsed Clover SA’s plans to acquire Dairy Farmers of South Africa and recommended that the Competition Tribunal conditionally approve the proposed transaction. Once approved, Clover SA would acquire the
milk procurement business, which provides raw milk procurement services to Clover, a manufacturer of and supplier of dairy products, peanut butter, mayonnaise, and other products. The milk procurement business sources regular raw milk from milk producers, mainly located in KwaZulu-Natal, Eastern Cape, and the Highveld area.
was initially a full subsidiary of Clover but was later split. Clover’s previous milk producers were allotted a 74% stake, while Clover retained a stake of 26%. The entity was split from Clover as part of the milk producer’s effort to drive more volumes of raw milk to increase profitability. It also sought to streamline the business, and to focus on its value-added offering.
’s product portfolio comprises non-value added fresh and long-life milk products, whereas Clover focuses on value-added products. Clover SA has subsidiaries across South Africa, Botswana, Namibia, and eSwatini and operates in various manufacturing facilities across Gauteng, the Free State, KwaZulu-Natal, the Eastern Cape and the Western Cape. Read/listen: Clover strike: what now? [Jan 2022]
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