S.Africa's Tiger Brands drops acquisition of two Kenyan firms

JOHANNESBURG, March 25 (Reuters) - South African food company Tiger Brands has dropped plans to acquire Kenyan firms Rafiki Millers and Magic Oven Bakeries, the firm said on Tuesday, terminating deals worth at least $25 million.

Tiger Brands, which has been on an aggressive expansion in sub-Saharan Africa in recent years, said in a statement the acquisitions had been called off by “mutual agreement between the parties”.

It did not give further details and a spokesman was not immediately available for comment.

The South African company said in February it had “recently acquired” 100 percent of both food companies Rafiki and Magic Oven, saying the Kenyan firms had an combined annual revenue of around 350 million rand ($32 million).

South Africa’s Business Day newspaper said in January the Rafiki acquisition would be worth around $25 million, citing a company executive. ($1 = 10.86 South African Rand) (Reporting by David Dolan; Editing by Joe Brock)