Advertise with fastmoving.co.za
 
 

Bunge-Senwes deal passed
Bunge-Senwes deal passed

Bunge-Senwes deal passed

FMCG SUPPLIER NEWS

Business Day - Sep 23rd 2011, 10:16

The Competition Commission has approved a joint-venture agreement between global agribusiness and food company Bunge Europe and South African agribusiness company Senwes to develop grain and oilseed operations in SA.
 

The green light has been given by the commission, which issued a merger clearance certificate yesterday — five months after the parties announced they had concluded the agreement for the procurement and marketing of grain and oilseed operations in SA and other countries on the continent.

In a joint statement yesterday, the companies said they were delighted with the outcome and said the transaction would become effective next month.

Senwes MD Francois Strydom said Senwes would benefit from Bunge’s expertise and capabilities in international grain and oilseed origination, logistics and risk management. "Senwes is excited to be able to share in this opportunity, as its growth strategy of product and market risk diversification is being executed amidst volatile and uncertain global economic times."

Bunge Europe CEO Jean-Louis Gourbin said that the venture represented a solid platform for Bunge’s growth in southern Africa. "Bunge has found the right partner to expand its activities in the region and complement its expertise and competitive advantages in logistics, access to global markets and risk management."

With about 32000 employees in more than 30 countries, Bunge buys, sells, stores and transports oilseeds and grains worldwide. It processes oilseeds to make protein meal for animal feed and edible oil products for commercial customers and consumers. It also produces sugar and ethanol from sugar cane, mills wheat and maize to make ingredients used by food companies, and sells fertiliser in North and South America.

New York-based Bunge has long been a leading supplier of grains, edible oils and other products to the Middle East and North Africa. Early this year, it entered into talks with Senwes to form a joint venture in SA, making this its first entry into sub-Saharan Africa’s grain and oilseed trade.

Bunge has a distribution business in Egypt. It also has a joint venture called Bunge Maroc Phosphore, with Office Cherifien Des Phosphates, which produces fertiliser products in Morocco for shipment to Bunge companies in Brazil, Argentina and other markets in Latin America, excluding Mexico. 

Related News

Shares in Five Roses owner plummet after dismal trading update
28/01/2019 - 08:56
Fast moving consumer goods group AVI warned shareholders that its interim sales were flat and its headline earnings would decline by up to 7%.

What FMCG companies can learn from the online trading industry
18/12/2018 - 08:09
Fast-Moving Consumer Goods (FMCG) are, by their very nature, products that are designed to be sold quickly at a relatively low cost. Unlike luxury items that often need to sit on the shelf for an extended period of time in order to build up some exclusivity, FMCG products need to be sold as quickly as they’re advertised. With speed being the key ingredient in the FMCG industry, any weak links in the chain can harm a manufacturer's bottom-line.

Listeriosis outbreak haunts Tiger Brands
23/11/2018 - 10:06
The Listeriosis outbreak in South Africa came back to haunt Tiger Brands, with the group reporting a 26 percent decline in headline earnings per share (Heps) to 1 587 cents a share during the year to end September, while revenue fell 9 percent to R15.87.

Black Friday spikes turnover for SMEs
22/11/2018 - 10:50
Even though it is tempting to relegate Black Friday as just another marketing gimmick, the reality is that it signifies the start of a month-long consumer spending frenzy that significantly boosts retail revenues.

#WomensMonth: How do women fare in the South African retail market?
15/08/2018 - 09:06
While we focus on women in South Africa during the month of August and honour our constitution for declaring the 9th of August a public holiday; retailers continue to look closely at the overall economic status of women. How liquid is the average women consumer? What does she buy? Does she have the buying power in a household and what does that household look like?