Woodlands Dairy and Fairfield Dairy merger gets go-ahead

By Jim Cornall

- Last updated on GMT

Woodlands Dairy markets some of its products under the FIRST CHOICE brand.
Woodlands Dairy markets some of its products under the FIRST CHOICE brand.

Related tags Milk

South Africa’s Competition Tribunal has conditionally approved a merger between Gutsche Family Investments Proprietary Limited (GFI), which controls Woodlands Dairy, and Fairfield Diary Proprietary Limited.

The relevant market in this merger is the national market for the manufacture and supply of butter, cheese, cream, flavoured milk, Amasi (a local fermented-milk product) and raw milk.

The merging parties intend the transaction to be implemented in tranches spaced out over several years.

The Commission recommended that the merger be approved subject to a condition. If the merged entity elected to effect the second tranche of its transaction after two years to the date of approval of this transaction, the merged entity would be required to notify that second tranche as a merger to the Commission.

Products for retailers

Fairfield, based in KwaZulu-Natal, is a manufacturer of dairy, dairy related and short life fresh juice products for retailers, as well as for its own Fairfield brand.

Woodlands Dairy, based in the Eastern Cape dairy region in Humansdorp, is one of the largest manufacturers of UHT milk in South Africa, marketed under the brand FIRST CHOICE.

The majority of Woodlands’ dairy products sold are house branded products for large retailers.

The company, which employs more than 1,400 people, processes, produces and packages dairy products for retailers including Spar and Woolworths.

Related topics Regulation & Safety Consolidation