Pioneer bid for Heinz Foods gets approval

Johannesburg – The Competition Tribunal has approved the acquisition of Heinz Foods South Africa by Pioneer Foods [JSE:PFG], on condition that the deal does not lead to significant job losses.

The Tribunal stated that the companies may only retrench a maximum of 27 employees in the next two years, as a result of the transaction.

The retrenchments may not include any employees with a formal qualification of Grade 12 or less.

It also stated that no jobs may be culled within a period of six months from the date of implementation of the transaction.

In November 2017, Pioneer Foods announced it would acquire the outstanding 50.1% of Heinz SA, making the company its wholly-owned subsidiary.

Pioneer Foods is also required to continue employing the unskilled Heinz Ketchup employees at its Wellington, Malmesbury or Worcester factories for a 12-month period from the date of the termination of the licence and manufacturing agreement.

Heinz Foods South Africa currently markets the Heinz range of ketchups, soups and baked beans.

The firm also produces and markets Wellington's range of sauces and condiments. It also distributes John West, Today and Mama's products.


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