Robert Gumede's Vision Sugar eyes takeover of ABF's Illovo Sugar

Vision Sugar, backed by South African billionaire Robert Gumede and Zimbabwean negotiator Rute Moyo, has entered discussions with Associated British Foods about buying Illovo Sugar. The outreach, directed at ABF chief executive George Weston, follows Gumede’s recent rescue of the indebted Tongaat Hulett group. Combining Illovo’s extensive sugar estates in South Africa, Zambia, Malawi, Eswatini, Tanzania and Mozambique with Tongaat’s assets would create a dominant African-owned agribusiness spanning sugar, ethanol and bioenergy.

Corporate finance sources estimate Illovo’s enterprise value between $800 million and $1.1 billion, positioning the deal as a major continental buyout. The merged company would control over half of South Africa’s sugar-milling capacity, leaving only RCL Foods as a sizable domestic rival, and would likely attract scrutiny from competition regulators. The acquisition also serves an energy strategy, allowing the new group to produce bio-ethanol and electricity from sugarcane residues. ABF and Illovo have declined to comment, and an outright sale would represent ABF’s exit from African sugar to focus on its European food and retail businesses, including Primark.