NEWS
RETAIL REVERTS BACK TO SHAREHOLDERS
Johan Le Grange Manager : Corporate Brands
Hinterland , the joint venture business of AFGRI and Senwes ' retail branches established in 2013 is in the process of disbanding . The decision , taken by the two shareholders , is based on the fact that the two agricultural businesses ‘ strategic approaches and business models are substantially different .
The termination of the joint venture relationship entails that the AFGRI branches in the eastern parts of South Africa will continue to conduct business as AFGRI whilst Senwes branches will keep on servicing its customers as Hinterland in the western areas .
The termination is subject to approval by the Competition Authorities but the planned date for implementation is 1 October 2020 (“ the Effective date ”). It will be business as usual and all prevailing suppliers ’ agreements and arrangements will remain in place .
Clients with accounts at Unigro or Senwes Credit will be affected and will only be able to purchase goods and services on credit after the Effective date at the relevant Afgri ( Unigro ) or Senwes ( Senwes Credit ) retail branches .
“ The realignment of the retail business will still focus on the customer and we see this as an opportunity to offer more tailormade solutions to our customer base ” said Francois Strydom , Chief Executive Officer of Senwes . Jacob de Villiers , Chief Executive Officer of AFGRI is of the view that the separation will enable each of the mother companies to focus on their own individual strengths .
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SENWES SCENARIO | LENTE � SPRING 2020