Bidvest looking to gobble up Brake

SOUTH African industrial and services group Bidvest has emerged as a potential buyer of the family-owned chilled and frozen food business Brake Bros.

The group said it was seeking clearance from the Office of Fair Trading for a 'possible combination' with the Ashford-based firm. 'Bidvest has today made a formal submission to the OFT seeking consent for a possible acquisition of, or merger with, Brake,' it added. Brake shares climbed 22 1/2p, or 3.1%, to 757 1/2p, valuing the business at just under £400m.

Brake was put up for sale last month when chairman Frank Brake decided to call it a day after more than 40 years with the group. He said the Brake family was looking to 'diversify its investment' in the business - it controls a 58% stake.

Bidvest, which owns First for Foodservice in the UK, said it believed a tie-up with Brake had 'compelling commercial logic' for both companies.

It made the OFT submission through its Bidvest Plc subsidiary, which is dual-listed in Australia and Luxembourg and has revenues of £1bn a year.

The parent is one the largest industrial and services companies listed on South Africa's JSE Securities Exchange. A spokesman said Bidvest would wait for the OFT's clearance before progressing any further. He added the process could take 10 weeks.

Bidvest is thought to be just one of several parties interested. A Brake spokeswoman said it was too early to comment.