RHODES FOOD GROUP’S ACQUISITION OF DEL MONTE CANNING OPERATION APPROVED BY THE COMPETITION COMMISSION
South African food producer, Rhodes Food Group (Pty) Ltd confirmed that the Competition Commission of South Africa has approved its acquisition of Del Monte’s South African fruit canning operation.
In terms of the transaction Rhodes Food Group will acquire the Tulbagh fruit cannery of the USA based Del Monte Fresh Produce Corporation. The transaction will be effective from 12 October 2010, in time for the start of the South African summer fruit season. Rhodes Food Group has also been authorized to sell and distribute Del Monte branded canned deciduous fruit products within South Africa, Botswana, Namibia, Lesotho and Swaziland.
Rhodes Food Group has fruit and vegetable canning operations in the Western Cape, Limpopo and Swaziland and its products are sold globally under the Rhodes brand and various leading supermarkets' private labels. The company is South Africa’s leading producer of chilled, ready meals and a major competitor in the South African pie market with its Magpie brand. It also has a vertically integrated dairy operation, which produces a range of dairy products including speciality cheeses under the Portobello brand.
According to Bruce Henderson, Managing Director of Rhodes Food Group, the South African fruit canning industry has faced challenging circumstances over the last few years. “This acquisition will present Rhodes Food Group with a significant improvement in economies of scale and thereby enable us to remain competitive in the global arena. The Tulbagh cannery will complement the group’s existing canning operations and contribute to positioning Rhodes Food Group as a significant player in the South African and international canned fruit markets,” stated Henderson.
For more information or interviews contact Group Managing Director, Bruce Henderson or Divisional Managing Director, Gerhard Kotze on +27 (0)21 870 4000.