Sweet sugar deal signed
03 July 2020 | Business
THN is a joint venture between Tongaat Hulett South Africa and the Frans Indongo Group, while Bokomo Namibia is a joint venture between the Frans Indongo Group and Pioneer Foods, a large South African-based food and beverage company.
In a media statement, Bokomo Namibia said the merger sees its market-leading brand, Marathon Sugar, join a number of household brand names manufactured and/or distributed by Bokomo Namibia including Bokomo wheat flour and maize meal, Weet-Bix cereal, Moirs, Liqui-Fruit, Ceres, Fruitree, Safari dried fruit and nuts, John West canned foods and Wellington’s Tomato Sauce.
It said the NaCC approved the merger subject to conditions which highlight certain public interest concerns related to employment, such as no retrenchment of employees as a result of the merger, and that employment contracts of the merged entity will be no less favourable than those of the pre-existing entities.
Bokomo Namibia's chief executive Hubertus Hamm acknowledged the conditions, saying that there will be no merger-specific retrenchments, despite synergies with regards to the merged workforce. “We are eager to start incorporating this business to assist with driving our distribution efficiencies as well as our overarching aim of building a stronger more sustainable product portfolio in the long term” he added.
Hamm said that the merger will benefit consumers, emphasising that Bokomo now has a significant scale which allows the company to compete more effectively, enabling it to provide a large range of complimentary food and beverage products to their customers and consumers across Namibia.
On his part, Frans Indongo Group chief executive Kobus van Graan said serving the community is at the heart of the group’s agenda and by bringing two important investments together under one umbrella operation, they believe they are well suited to continue driving Namibia’s economic stability. – Nampa