Clover Industries Ltd received a buyout offer that led to CBC valuing the company at $359 million (R4.8 billion) with reports that the Israeli company planned to expand the dairy business across sub-Saharan Africa.
According to BDS SA, CBC together with several smaller partners (including the South African firm Brimstone) have formed a company called MilCo, and if the deal proceeds, Israel’s CBC will take control of 59.5% of the milk and dairy company.
BDS SA has accused CBC of being complicit in human rights abuses and violations of international law.
“BDS SA is investigating the matter and will be meeting our partners as well as with Brimstone Investment Corporation led by Fred Robertson and Mustaq Brey (Brimstone is the local South African partner to Israel’s CBC in this buyout of Clover).
“If the deal proceeds, we will actively support and join the call for direct action and a militant but peaceful campaign, including protests and disruptions, against Clover and a boycott of all its products.”
This week, Brimstone announced its participation in MilCo’s bid to acquire the entire issued share capital of Clover Industries Limited.
In a statement, Brimstone chief executive Brey said: “In addition to a long history of being one of SA’s most popular brands, Clover runs SA’s largest chilled and frozen goods distribution network and is well placed for further expansion.
This made it an attractive investment proposition for the foreign direct investment which this country desperately needs if we wish to achieve the economic freedom our country deserves.”
Brey said MilCo was adopting an owner-operator approach, in addition to creating 100 new permanent job opportunities and skills development for employees.