Kraft Foods Set to Acquire TANG for Rs 65 Crore
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Kraft Foods, a new and leading consumer company in Pakistan, is set to acquire famous brand TANG for Rs 65 Crore from Clover Pakistan. The sale will be completed in few weeks, subject to approval from Competition Commission of Pakistan.
Clover Pakistan’s shareholders finalized this deal in a meeting on 22nd March.
Clover Pakistan, the owner of TANG brand in Pakistan, and Kraft Foods Limited entered into an Asset Purchase agreement whereby Clover agreed to sell to Kraft Foods certain assets relating to Clover’s TANG business, including the manufacturing facilities, leasehold land measuring 19,000 square meters and free hold land of 7,175 Acres and intangible assets relating to TANG business, including termination of the users’ rights, the provision of a list of the company’s customers, selling trade outlets and distributors.
The deal is subject to obtaining exemption from Competition Commission of Pakistan, an undertaking from the company not to compete in the non-carbonated fruit flavored powdered beverage business for a period of 2 years.
The Pakistan’s consumer food market which is estimated to be around $4.2 Billion annually is already expecting a competition with new entrants in market. With Kraft foods in market with a leading consumer brand in its hands, coming days might witness interesting competition in beverage industry.
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Tang is a Kraft Foods brand globally. Clover was managing it in Pakistan before Kraft’s presence here, which came with the global acquisation of Cadbury by Kraft.