Merger Alert: Foodcorp (Pty) Ltd And Sunshine Bakery Holdings (Pty) Ltd

The Tribunal has conditionally approved the large merger between Foodcorp (Pty) Ltd (“Foodcorp”) and Sunshine Bakery Holdings (Pty) Ltd (“Sunshine”).

Foodcorp is a wholly owned subsidiary of RCL. RCL and its subsidiaries are manufacturers of a wide range of branded and private label food products including: culinary, pet food and beverage products; the Sunbake and Supreme Flour brands; and the 5 Star, Monati, Safari Braaipap and Tafelberg maize brands.

Sunshine and the firms it controls are mainly involved in the production and wholesale supply of bread to retail supermarket chains, convenience stores, independent wholesalers and informal trading stores.

In terms of the condition imposed on the merger, Sunshine will procure at least 50% of its quarterly bread flour requirements from Independent Bread Flour Suppliers for two years. This is subject to the parties agreeing on reasonable commercial terms for supply of bread flour.

Issued by:

Gillian de Gouveia, Communications Officer
On behalf of the Competition Tribunal of South Africa
Cell: +27 (0) 82 410 1195
E-Mail: GillianD@comptrib.co.za
Twitter: @comptrib