Danone has agreed to acquire all of Brookside Dairy’s Tanzanian dairy business, less than three years after investing in a 40% stake.
The buyout will be completed through Brookside Holdings – the wholly owned subsidiary that acted as a vessel for the French company’s acquisition of a minority stake in 2014.
At the time, FoodBev reported that Brookside Dairy had annual revenues of €130 million and was East Africa’s leading dairy products group.
Tanzania’s competition commission confirmed: “The FCC has received a merger notification to the effect that Brookside Holdings intends to acquire 100% of the issued share capital in Brookside Dairy Tanzania. FCC is currently investigating the intended acquisition in line with the provisions of the FCA and the FCC procedure rules.”
After completion, Danone will own all of Brookside’s Tanzanian business and will continue as a minority partner in Kenya and Uganda.
The company is buying out the 60% stake owned by Africa’s influential Kenyatta family, which includes the current president of Kenya, Uhuru Kenyatta.
According to Business Daily Africa, the divestment “comes against the backdrop of lukewarm diplomatic relations between Kenya and its southern neighbour.
“The two countries have developed mutual suspicion arising from differences over Uganda’s decision to abandon a joint plan to build a multi-billion shilling crude oil pipeline through Kenya in favour of Tanzania, and Dar es Salaam’s refusal to ease its tough work permit regulations for Kenyans.”
Seemingly, Brookside Dairy, which was founded in Kenya in 1993, will consolidate and re-focus its operations in its home market.
© FoodBev Media Ltd 2019