Robert Gumede’s Vision Group targets $1.1 billion acquisition of sugar leader Illovo

South African investor group Vision Group, led by businessman Robert Gumede, is setting its sights on rival Illovo Sugar just months after rescuing debt-burdened producer Tongaat Hulett. The proposed takeover would pull the continent’s top sugar, ethanol, and bioenergy assets under a single African-owned business.

Representatives from Vision Group, including Gumede and Zimbabwean dealmaker Rute Moyo, have approached London-based Associated British Foods about acquiring its subsidiary, according to a person familiar with the discussions. Corporate finance advisers estimate Illovo’s enterprise value between $800 million and $1.1 billion. ABF Chief Executive Officer George Weston has been the primary point of contact for the preliminary talks.

Vision advances mega Pan-African sugar acquisition

If completed, the deal would cover Illovo’s network of farming operations and processing plants across South Africa, Zambia, Malawi, Eswatini, Tanzania, and Mozambique, marking one of the largest agricultural acquisitions in Africa in over ten years. Combining Tongaat and Illovo would give Vision broad sway over sugar production across Southern and Eastern Africa.

In South Africa alone, the merged business would control more than half the country’s milling capacity, leaving Remgro-backed RCL Foods as its main domestic rival. That concentration of market share is expected to draw close scrutiny from competition authorities. Beyond traditional sugar sales, the deal serves as an energy strategy.

Robert Gumede aims to tap sugarcane fiber to generate electricity and use both Tongaat and Illovo refineries to expand bio-ethanol production for regional markets. For ABF, a $20 billion conglomerate, selling Illovo would mark a full exit from African sugar, freeing up cash to focus on its primary European food business and its fast-fashion chain, Primark.

IDC equity swap rescues Tongaat

Tongaat Hulett, founded in 1892, entered business rescue in 2022 after accounting irregularities and mounting debt nearly forced it into liquidation. In June, business rescue practitioners finalized an agreement to sell the agribusiness to Vision Group.

That restructuring gained essential support from South Africa’s Industrial Development Corporation, which agreed to swap its R2.5 billion ($154 million) loan for a direct equity stake. The state lender is also providing operating funds through September 2026, a move expected to protect roughly 250,000 direct and indirect jobs across the regional supply chain.