The French Groupe Danone beverage and biscuit corporation is set to increase its share in Clover, South Africa’s biggest dairy group, once competition and regulatory authorities give the go-ahead.
This follows the green light by Clover SA’s minority shareholders to the plan and will result in a restructuring of the company, which seems destined to lose at least one tier of its present composition, making it a more streamlined entity.
Danone, through its subsidiary, Compagnie Gervais Danone, invested R450m in Clover in 1997 and at present has a 4.4% share in Clover Holdings, (which is expected to be deregistered as part of the new dispensation), a 22,75% share in Clover South Africa and a 55% share in a JV known as Danone-Clover.
It is expected that when the new company is confirmed, probably in April, Danone will have in excess of 35% of Clover SA, but it is not known at this stage what the rest of the pie will look like.
