South African food group Tiger Brands said its planned acquisition of Kenyan firms Rafiki Millers and Magic Oven Bakeries have foundered amid disagreement over the final terms of the deals.
Tiger said there was a “divergence of opinion on matters relating to the closing of the transaction” and the companies “mutually agreed” to end the planned deal.
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The company announced in January it was looking to buy Kenyan flour miller Rifiki. The Kenyan firm is the country’s fourth-largest flour miller, behind Mombasa Millers, Pembe Millers and Premier Group.
Tiger was coy about why the acquisition was not finalised but insisted the reasons were “transaction specific”.
“We remain strongly of the view that the Kenyan and East African markets remain attractive,” Tiger said. “We remain open to appropriate opportunities in Kenya and East Africa.”
Tiger Brands has increasingly looked to develop its food operations and expand further into Africa’s growing economies.
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By GlobalDataIn 2012, the company purchased a majority stake in Nigerian flour and pasta maker Dangoteis.
Outside South Africa, Tiger has operations in countries including Nigeria, Zimbabwe, Kenya and Cameroon.
