Finweek English Edition - - INVESTMENT - Si­mon Brown

Fa­mous Brands* an­nounced a 49% pur­chase of Mr Bigg’s in Nige­ria, mak­ing it the big­gest player in the rest of Africa. The odd­ity was that Fa­mous Brands only took 49%, as it usu­ally takes a ma­jor­ity so as to en­sure con­trol. Man­age­ment has had many good rea­sons as to why but I won­der if it isn’t also about get­ting ac­cess to a cen­tral kitchen and dis­tri­bu­tion net­work. Sure, it doesn’t own the fast-food fran­chise, but it will be able to im­prove it and then plug its other brands into this net­work. This should give al­most im­me­di­ate bet­ter economics for new stores in the coun­try. si­monb@fin­

@Si­monPB *The writer holds shares in Shoprite, Fa­mous Brands and Capitec.

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