Bunge Europe Acquires 50% Interest In Senwes' African Business
News: US-based food processing firm Bunge, through its subsidiary Bunge EMEA (Bunge Europe, Middle East and Africa), has acquired a 50% stake in South Africa-based agriculture company Senwes' African business for an undisclosed amount. The move will not only boost the duo's expansion plans into the remaining parts of Africa, but will also help with risk sharing between the two firms. The agreement follows a merger clearance certificate issued by the Competition Commission to the two firms in September 2011.
BMI View: Per capita food consumption in South Africa is expected to grow strongly over the forecast period. Over this period, we see consumption in US dollar terms increasing from about US$830 in 2010 to nearly US$1,600 in 2015. As South Africa is the wealthiest African market, per capita spending in the country is a long way ahead of regional averages. Although household spending remains weak as the South African economy continues to feel the effects of the 2009 downturn, there is significant scope for food consumption to grow past 2015, with the emerging middle class providing strong impetus.