The Competition Commission has endorsed Clover SA’s plans to acquire Dairy Farmers of SA (DFSA), putting a moratorium on retrenchments for at least three years.
It said the companies agreed not to effect any retrenchment for that period.
“The merging parties have agreed to not effect any retrenchments for three years from the approval date. Clover has also committed to making additional investments in training and skills development as well as enterprise development over a five-year period post-merger,” said Siyabulela Makunga, the Competition Commission’s spokesperson.
“Further, Clover will maintain existing milk procurement contracts with relevant suppliers for five years from the implementation date, provided that the relevant suppliers continue to supply regular raw milk to Clover at market-related prices.”
The deal reunites the companies. DFSA, which is one of the largest collectors of raw milk in SA, was initially a subsidiary of Clover SA. Then it was 74% owned by
DFSA’s Milk Producers. Clover sold its investment in DFSA in May 2020 to the Milk Producers Trust.
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