South African ostrich unit of Kein Karoo International Leather, a meat group also in charge of leather tanning activities, and Mosstrich group are about to carry out a merger soon. Negotiations are already well underway. As reported by Die Hoorn, a South African daily newspaper, the board of directors of both enterprises approved the merger to create a new company. As soon as Pretoria Antitrust issues authorization, they will bring the deal to completion. The aim of the merger, whose negotiations started in 2017, is to reinforce the position of both businesses in the market. As reported by other press sources, South Africa’s ostrich leather market has been facing a shortage of provisions since 2011, when they imposed restrictions to ostrich meat export owing to bird flu epidemic. Provisions, which amounted to 240,000 units a year, first dropped down to 160,000 units. Predictions for 2018 and 2019 are about 130,000 units.
South Africa’s tanning merger to reinforce ostrich business after low provisions, nearly 50% less, since 2011
