Israelis resolute in forging ahead with Clover

Central Bottling Company (CBC), the Israel-based lead partner in the Milco consortium that has made an offer to buy Clover, is in SA for the long term, a senior representative of the company said on Wednesday.

The Milco consortium is on the brink of acquiring Clover in a transaction worth R4.8bn.

However, CBC’s Israeli ties have overshadowed the proposed deal since its announcement in February.

Palestine solidarity organisation Boycott Divestment Sanctions SA has criticised CBC’s involvement and threatened to spearhead a boycott of Clover products. As a result of the sharp criticism, the consortium’s original BEE partner, Brimstone, withdrew from the grouping.

Speaking at the Competition Tribunal hearings on the transaction, Richard Izsak said the family-owned business had long-term plans for SA.

“We are here for the long term. We are here to grow Clover,” Izsak said.

The consortium would prioritise growth through exports, by taking Clover’s products to the rest of Africa. He said the company would also ensure the availability of the company’s products in SA’s townships.

“The plan is about getting closer to the retailers,” he said.

He also addressed longstanding criticism of the company’s Israeli roots.

“CBC is a privately held company. We do not get involved in politics. We operate according to the laws of every country in which we operate and every country which we sell to. There have been no findings against CBC in any jurisdiction regarding international law,” Izsak said.

Trade unions opposed to the proposed deal also raised the issue of CBC’s Israeli ties in their submission to the tribunal.

General Industries Workers Union of SA (Giwusa) general secretary John Appollis said on Wednesday the union was opposed to CBC’s participation.

“CBC is operating in the occupied Palestinian territories. It has a number of operations there. It is in violation of international law by operating in occupied territories,” he said.

But Milco lawyer Jocelyn Katz said the allegation about the ongoing political conflict in the Middle East fell outside of the tribunal’s mandate.

“The personal and political views of a section of society simply do not have a bearing on the merger process,” Katz said.

Giwusa and Inqubelaphambili trade union, whose members work for Clover, want the tribunal to block the transaction as it would allegedly result in the loss of 516 jobs.

The Competition Commission recommended in July that the tribunal approve Milco’s acquisition of Clover with conditions, including a moratorium on job cuts for two years.