Danone and Clover SA are pleased to announce that Clover SA has agreed to sell it's 45% shareholding in the joint venture Danone Clover (Proprietary) Limited (“Danone Clover”) to Danone, for an amount of R1,085 billion (close to €100 million) in cash.
Post 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. In addition to the change in the shareholder structure, the agreement redefines the relationship between Clover SA and Danone Clover 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, the worldwide leader in fresh dairy products, and Clover SA, the leading player in the South African market of dairy products. Through the joint venture, the two companies jointly re-invented the market and innovated over the last 12 years, driving a five-fold increase in yoghurt consumption.
In 2009, Danone Clover holds a 44% value market share through the Nutriday, Activia, Ultramel and Inkomazi brands. Danone Clover operates two production sites in Eastern Johannesburg. Clover SA will be able to use the proceeds received from the transaction to settle debt and reposition its factories and reshape its distribution facilities, projects which it has been contemplating for some time.