There appears to be much conjecture about whether the investment behemoth Remgro has landed with its bum in the butter with the R7bn acquisition of "spreads" brands — such as Stork, Rama and Flora — from the consumer goods giant Unilever. One suspects, especially after certain recent corporate activity, Remgro would be determined not to overpay for such a sizeable acquisition. But investors were still pressing for more flavour on the transaction at the investor presentation on Thursday. Remgro CEO Jannie Durand, however, was reluctant to respond in detail. Durand was asked what proportion of Unilever’s earnings the spreads business comprises as well as what the potential operating costs are. He stressed Remgro — which has created a new subsidiary, Silver 2017, to house the spreads brands — will need to establish its own cost base after carving the operations out of the Unilever systems. It seems Remgro is confident of running a leaner show, with Durand hinting that the cost-allocati...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.