Pioneer Foods is the first confirmed corporate casualty of South Africa's credit-ratings downgrade. The food giant has announced the collapse of a deal that would have created Africa's largest consumer goods company. Immediately after the announcement of the downgrade "everything just stalled", Pioneer Foods CEO Phil Roux said on Friday. "Panic ensued and news flow was terribly negative abroad and consequently they [the multinational] advised that while they are a massive organisation they just cannot, given the state of investment required, deepen their risk in any shape, manner or form," said Roux.The share price of Pioneer, the second-largest fast-moving consumer goods group, fell as much as 7% after the announcement on Friday. The stock recovered somewhat to end the day 4.4% weaker at R169. Roux, who is under a nondisclosure contract, could not name the multinational or the value of the investment but said that before the downgrade, the company was optimistic about South Africa'...
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