The Competition Commissions has approved the acquisition of Tiger Brands meat processing factories in Germiston, Polokwane and Pretoria by Silver Blade Abattoir (Pty) Ltd.
According to Tiger Brands, the processing meat facilities were reviewed in 2017 after the outbreak of listeriosis which led to temporary closures.
“We spent a significant amount of time, energy and money ensuring that we have a sustainable business with world-class facilities and highly skilled staff at all the operations. We were confident that our operations would add tremendous value to a company for which meat processing is a better strategic fit” said Tiger Brands Neon Doyle.
Silver Blade Abattoir is a subsidiary of Country Bird, one of South Africa’s largest fully integrated chicken producer with head offices in Johannesburg.
According to JSE SENS announcement, Country Bird offered a total cash price of R153 millions of “which R40 million will be payable on the effective date of the Country Bird Transaction, which is expected to be 1 November 2020, with the balance to be paid by 1 April 2021.”
The Commission found that the proposed transaction was unlikely to result in a substantial prevention or lessening of competition in any relevant markets.
“The Commission further found that the proposed transaction did not raise any public interest concerns” said the Commission’s Spokesperson Siyabulela Makunga in a statement.
Furthermore, the Commission unconditionally approved the Country Bird and Fienschmecker merger, which produces products such as ham, salami and cured meats, chilled or smoked sausages; polony; pates & spreads; and frozen or raw sausages.