JSE-listed Astral Foods will spend 90 million rand (ZAR) to extend its KwaZulu-Natal footprint by buying a poultry processing abattoir in the province, the group has said, according to Business Day of South Africa.

"The acquisition of Mountain Valley is in line with our strategy to expand our poultry processing operations into regions where Astral does not currently have a presence," Astral CEO, Chris Schutte, said.

The abattoir is situated near Pietermaritzburg, close to Astral's broiler chick operation at National Chicks and its animal feed operation, Meadow Feeds.

The acquisition is subject to approval by the Competition Commission and will be funded from available cash resources, the company said.

Mountain Valley's fresh poultry products represent about 90 per cent of its total production. It also packs products for third parties to supply mainstream retailers. It cannot meet order demand in KwaZulu-Natal, Astral said.