South African Companies Offer Value Compared To Overseas Counterparts
Heineken’s proposed R40.1 billion offer for Distell is the latest in a series of notable bids for large South African businesses. This follows DP World’s recent proposed R12.7 billion offer for Imperial Logistics and PepsiCo’s R26 billion acquisition of Pioneer Foods in 2020. A key driver for all three deals is using the local companies as a platform for African expansion. Could this be indicative the country is the next hot spot for merger and acquisition (M&A) activity? Typically, our businesses are ‘bargains’ compared to their overseas counterparts.
With M&A activity at an all-time high in Europe and the US, it is likely that there will be further spill-over to local shores; especially given the select value proposition that certain South African companies present. This has maj...