Danone is set to take control of its joint venture in South Africa, the French food giant announced today (10 December).
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Danone will buy Clover SA’s 45% stake in the Danone Clover joint venture for a total of ZAR1.09bn (US$145m) in cash.
The deal will see Danone take 100% ownership of a business that is the South African market leader in fermented fresh dairy products.
Clover will continue to provide Danone Clover with fresh milk and distribution services.
“Partnering with one of the most attractive food companies in Africa has been a great adventure for Danone and has enabled us to successfully build a franchise with sustainable growth, not just in South Africa, but more broadly in the entire region (notably in Angola, Namibia, Mozambique),” Bernard Hours, Danone co-COO, said.
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By GlobalData“Taking full control of this joint venture reflects our ambition as well as the confidence we have in the growth perspectives of this business,” he added.
Clover CEO Johann Vorster said that the company had realised a “sizeable profit” from the transaction, which would be invested in upgrading its factories and distribution facilities.
