Johannesburg, April 5 - South Africa's food and pharmaceuticals group Tiger Brands said on Wednesday it planned to acquire the South African sugar confectionery portfolio of Swiss food maker Nestle. Tiger Brands, South Africa's biggest consumer-branded products group, said the revenue of the unit is more than 100 million rand ($16.50 million) per year, but it did not say how much it will pay for the business.
The unit includes brands such as Jelly Tots and Wilsons.
The business will come under Tiger Brands' Snacks & Treats division of its Domestic Food unit, which accounted for 44 percent of operating profit last year.
Nestle South Africa decided to dispose of its sugar confectionery business to focus on its chocolate business, it said in the statement.
Tiger Brands manufactures popular South African foods like Jungle Oats and Tastic rice and is the country's largest grain trading company. The company also sells drugs and hospital products and has fishing interests.
Tiger Brands shares were down 0.09 percent at 173.25 rand at 0930 GMT while Nestle rose 0.06 percent to 385.75 Swiss francs.