The Competition Tribunal has approved two large retail sector acquisitions - the purchase of the PicardiRebel liquor stores by Shoprite Checkers (Shoprite), as well as the acquisition of In2food Holdings by Woolworths. Both deals are subject to conditions.
PicardiRebel buyout
Target businesses in the Shoprite deal comprise liquor stores trading as PicardiRebel, which sell liquor directly to consumers, as well as a wholesale liquor store. The businesses operate across South Africa.
Of particular relevance to the transaction is the Shoprite group’s liquor retail business, which operates under the LiquorShop brand. Its stores offer a range of local and international alcoholic and non-alcoholic beverages and are generally located alongside, or near, the group’s supermarkets.
The approval is therefore subject to conditions requiring the merged entity to: invest capital expenditure in refurbishing the PicardiRebel stores; and implement a two-year moratorium on merger-related retrenchments.
In2food acquisition
In2food is a food manufacturer specialising in the production of fresh, prepared and convenience foods as well as a broad range of grocery products. It primarily focuses on manufacturing and supplying private-label food products for major retailers, including Woolworths itself. It also supplies international markets, exporting products to customers in the United Kingdom, Europe, Australia, North America and New Zealand.
The transaction will give Woolworths full ownership and control of In2food.
Relevant to the transaction is Woolworths' food division, which offers a broad range of premium private-label products including fresh produce, prepared meals, bakery products, delicatessen items, packaged groceries and beverages. These products are sold through Woolworths' retail store network and online platform.
The approval is subject to conditions addressing employment, procurement and safeguards relating to the handling of competitively sensitive information.
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