By Eamonn Ryan
The Cold Chain Refrigeration, Logistics and Technology Summit held on 22–23 May in Stellenbosch opened with an overview of mergers and acquisitions (M&A) in the cold chain by Mark Cairns, a cold chain consultant. This is Part 2 of a two-part series.

Understanding the impact of M&A on business strategies
“Cultural players binding with energy partners, companies venturing into alternative energy sources, and even the emergence of power plants within the industry are indicative of radical diversification strategies. Such developments are occurring throughout the supply chain, prompting service providers and companies operating within the cold chain environment to reassess their strategies and adapt to evolving market dynamics.
“Cost synergies have emerged as a driving force behind many M&A transactions, with businesses seeking to streamline processes and optimise resources. Through M&A, companies can unlock opportunities for operational efficiencies, leveraging specialised skills and expertise to address critical gaps in the workforce. However, retaining talent remains a persistent challenge, underscoring the importance of nurturing and incentivising skilled professionals within the industry,” explains Cairns.
Market consolidation represents another significant outcome of M&A activities, with companies vying for market leadership and competitive advantage. Cairns adds: “While the African continent presents vast opportunities, the absence of pan-African or regional players poses strategic considerations for industry giants eyeing market expansion. Regulatory compliance further drives M&A decisions, as companies seek to align with evolving legislative frameworks and ensure long-term viability.”
Reflecting on the implications for individual businesses, Cairns urges stakeholders to consider several key questions:
- Further consolidation: Will there be additional consolidation within the industry, and how will this impact existing businesses?
- Global competition: What is the risk posed by increased global competition, and how can businesses prepare to navigate this landscape effectively?
- Strategic positioning: Are businesses positioned correctly to weather the changes brought about by M&A activities, and what adjustments are needed to enhance their value proposition to customers?
“While M&A may seem distant from day-to-day operations, proactive consideration of these questions is vital for future-proofing businesses and ensuring sustained growth and relevance in an ever-evolving market landscape.
“It is evident that the implications of M&A extend far beyond financial transactions, shaping the very fabric of the cold chain industry and its cultural dynamics. By embracing a forward-thinking approach and cultivating a culture of adaptability, sector participants can navigate the complexities of M&A and emerge stronger, more resilient and better positioned to thrive in the dynamic cold chain ecosystem,” concluded Cairns.