BDS milks it as Clover deal with Israel turns sour

NICOLA MILTZ

The proposed deal between Israel’s Central Bottling Company (CBC) and Clover, South Africa’s biggest dairy producer, stared trouble in the face last week as heavy pressure from Boycott Divestment Sanctions South Africa (BDS-SA) took its toll.

BDS has been hell-bent on destroying the R4.8 billion investment deal, which would be a desperately needed financial boost for South Africa’s struggling economy.

However, in the face of the deal potentially taking a nose dive, DIRCO said out loud, “South Africa is open for business.” In other words, hands off this deal!

DIRCO spokesperson Ndivhuwo Mabaya told media this week that if the transaction was “approved by the necessary competition and regulatory bodies, we see nothing wrong with the deal”.

In this dramatic and positive pro-Israel move, arguably for the first time ever, DIRCO indirectly told BDS to back off, defending the proposed offer by international consortium Milco to buy out Clover Industries.

It took place in the same week that President Cyril Ramaphosa made it clear during his State of the Nation Address that the government was continuing its drive to attract FDI into South Africa, saying, “We aim to raise even more investment this year.”

In 2018, Ramaphosa set a target for luring investment of $100 billion (R1.3 trillion) by 2023 in an attempt to stimulate economic growth, which has fallen far short of the 5.4% annual target set in the National Development Plan.

Notwithstanding DIRCO’s sentiments, BDS has already seriously damaged the Clover deal by placing enormous pressure on Brimstone Investment Corporation to pull the plug.

Johannesburg Stock Exchange-listed Brimstone Investment Corporation – a black-empowerment investment company which is part of the bidding group led by Tel Aviv-based CBC, was forced to “review” its role in the transaction following “widespread outrage”, it said.

No sooner had the announcement been made about the buyout offer, BDS went to work on a sinister campaign to smear CBC to try stop the deal from taking place. It did this regardless of the obvious positive financial spinoffs such a deal could have for South Africa, and the powerful impact it could have on combatting the country’s rising unemployment levels.

BDS set its tentacles of minions throughout civil society, business, and labour circles, as well as Muslim student associations in a fierce bid to sway public opinion. It took three days from the time the buy-out offer was announced on Monday last week until Thursday for Brimstone to backtrack.

It is understood that anti-Israel lobbyists from imams to Islam radio talk-show hosts and affiliated media platforms helped to spread toxic information about CBC, accusing it of being complicit in human-rights abuses and violating international law. BDS warned that unless the deal was cancelled, it would “actively initiate, support, and/or join the call for direct action and a militant but peaceful campaign”.

On Twitter, Achmat wrote, “Clover cannot be seen bankrolling the brutal Israeli occupation. Hope they end this deal before it starts.”

Umm Natheerah tweeted, “Sad to see South African Muslims like CEO of Brimstone Mustaq Brey involved in business with Zionists who are oppressing Many & murdering Papestinians (sp) and stealing their land. Brimstone selling their souls to the devil for dollars.”

Radio Islam tweeted, “Israel’s CBC linked to former Mossad agent complicit in atrocities against Palestinians.”

Iqbal Jassat of the anti-Israel Media Review Network described the deal as a “Clover sellout”, and said that MRN had “kicked off a public-awareness campaign”. In a lengthy and highly scathing article he said, “Rudimentary research on CBC reveals it to be complicit in Israel’s settlement enterprise.”

He continued his criticism of CBC, saying, “Owned by the heirs of Moshe Wertheim whose association with the dispossession of Palestine goes back to the period of ethnic cleansing of the indigenous population when he fought in the Palmach terror-militia.”

Meanwhile shares in Clover, which also processes products like yoghurt and olive oil, fell nearly 10% on Thursday after Brimstone’s change of heart.

Outrageously, BDS welcomed Brimstone’s back peddling. It issued a statement saying that it believed that “South African companies are attractive investment opportunities for global investors, and that there will be many alternative investors.”

South Africans expressed dismay at the possibility that the deal might be scuppered.

Sowellnomics tweeted, “South Africa has the highest youth-unemployment rate in the world, and BDS wants us to reject R4.8 billion in foreign investment into Clover because the money comes from a Jewish country. They are a selfish hate group that does not care about the unemployment crisis in this country.”

A further tweet said, “South Africans are interested in foreign investment and world-class technology which will help solve our unemployment crisis. It will be extremely disappointing to lose out on R4.8 billion of investment due to pressure from anti-Semites.”

There is strong speculation that the deal is likely to be salvaged, but it is at a sensitive stage.

One businessman in the know who requested anonymity, said, “It’s a travesty that this county could potentially see the loss of major direct foreign investment. South Africa is struggling to get any foreign investment at all, and here was a substantial [offer] on the table.

“Not only that, but the Israelis surely had a plan to expand and grow the business significantly with their world-class technology and know-how. The government should have taken a far more proactive role in fighting off BDS threats and intimidation, which is surely what derailed the deal.

“I am also convinced that this debacle is going to scare off major potential investment by developed nations which don’t appreciate governments that aid and abet BDS, [something which] South Africa, by its lack of a clear stance on the deal, may be perceived as doing.”

The Milco consortium is led by CBC, which is offering to buy 59.5% of the South African food producer. Brimstone offered to buy 15% of Clover’s shares at R25 each. Other members of the Milco consortium are Ploughshare Investments, which will buy 10.9%, and IncuBev, which will buy 8.3%. Clover’s management will retain a 6.3% stake.

The food group’s share price jumped 19% to R23.80 on Monday morning after the JSE opened, but soon dropped after Brimstone expressed having second thoughts.

The rest of the consortium seeking to take over Clover reiterated its commitment to the proposed transaction.

CBC said it wanted to buy Clover as a way of expanding its operations in Africa. Clover has 8 000 employees and operates 13 plants. CBC is Israel’s leading manufacturer and distributor of popular beverages, including Coca-Cola, Fuze Tea, Tuborg, and Carlsberg beers. It has overseas operations in Turkey and Uzbekistan.

The next few weeks are crucial for Milco, which says it represents a group of operators and investors with extensive international and regional expertise in the dairy, juice, and beverage industries, and that it remains committed to the deal.