We were pretty excited last week to bring you news of Clover’s potential acquisition by the Milco consortium, led by Israeli bottling business CBC. Not so fast there, cowboy. Brimstone, which was down for a 15% stake in the consortium, might be pulling out under pressure from Boycott, Divestment and Sanctions SA (BDS), a lobbying group which takes a dim view of anything Israel. Together with Clover management, who are in for 6%, Brimstone is the sole entirely South African partner in the deal, and are still talking it up somewhat, on the grounds of foreign direct investment in South African business. BDS have promised “direct action and a militant, but peaceful campaign" should the deal proceed, and this could mean disruption of Clover supply in one way or another. On the news of the potential deal, Clover shares jumped +16% in value; on this most recent bit of news they dropped -3%.
Comment: BDS, which you may recall had a go at Woolies a couple of years back, seem to target the businesses in this great industry we call home, perhaps as they are so familiar to consumers and are easier to leverage into publicity.