Sweet tooth for peckish Primark-owner Associated British Foods as it snaps up Africa’s largest producer of sugar
Primark-owner Associated British Foods (ABF) has finally filled a long-standing hole this morning, completing a £262m purchase of Illovo Sugar Limited, Africa's largest producer of the sweet stuff.
The extra calories failed to put much energy behind ABF shares in London, however, with the firm up just 0.41 per cent to 3,401p in the first minutes of trading.
ABF already owned more than half of Illovo but has this morning completed a purchase for the remaining 48.65 per cent stake in a 25 rand a share deal.
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The conglomerate has been looking to boost its sugar intake for some time and has finally managed to provide a sweet enough deal for Illovo's board to get behind.
Shares in the Johnnasburg-listed firm have risen by 25 per cent since takeover rumours emerged at the start of the year and today's deal marks a further 20 per cent premium. Shares in Illovo closed at 20.70 rand yesterday.
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Although ABF may be best known as the owner of the high street discount clothes retailer, the conglomerate also owns Allied Bakeries, Ryvita, Ovaltine and Twinnings Tea. Milk producers, watch out.
The deal is still subject to approval from Illovo's remaining minority shareholders, though there are not expected to be any objections.