Danone and Clover reach deal

Danone and Clover SA have announced that Clover SA has agreed to sell its 45% shareholding in the joint venture Danone Clover to Danone, for an amount of Rand 1,085 million (close to €100,000,000m).

On completion of this transaction, which is subject to official approvals, Danone will hold 100% of Danone Clover, the market leader in fermented fresh dairy products and desserts in South Africa.

As well as the change in shareholder structure, the agreement redefines the collaboration between the two companies through the services Clover SA will continue to provide in the coming years, notably in the fields of raw milk supply and distribution.

Danone Clover was created in 1998 by Danone, a leader in fresh dairy products, and Clover SA, the leading player in the South African market of dairy products.

Both companies, through a joint-venture, helped establish a five-fold increase in yogurt consumption.

Bernard Hours, co-chief operating officer of Danone, comments: “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.

“The trust and professionalism of Clover’s teams have played a key role in this achievement. Taking full control of this joint-venture reflects our ambition as well as the confidence we have in the growth perspectives of this business. It also reflects the determination of our employees to deliver Danone’s mission to bring health through food to as many people as possible, to benefit South African consumers.”