South Africa’s Competition Commission has given the go ahead for Nestlé and R&R Ice Cream to launch Froneri, a joint venture which will sell products across 20 countries, including South Africa. According to the original press release announcing in April this year, Nestlé and PAI Partners, R&R Ice Cream’s private equity owners, will each have a 50% equity share in the new venture.
The joint venture is the latest of a number of deals transacted between Nestlé and R&R over the last couple of years. In March this year, Nestlé agreed to sell it South African ice cream interests to R&R in an undisclosed deal. A little less than a year earlier, R&R agreed to acquire Australian company Peters Food Group from Nestlé in May 2014,
With the Commission’s verdict that the joint venture plans raised no public interest concerns or were “unlikely to substantially prevent or lessen competition in any market”, the necessary regulatory approvals in South Africa have now been received.