South Africa’s Competition Commission has prohibited JSE-listed Transpaco’s proposed R128 million acquisition of 35-year-old plastic bag manufacturer Premier Plastics, derailing the packaging group’s planned market expansion.
JSE-listed Transpaco has seen its deal to acquire Premier Plastics Proprietary Limited struck down by the Competition Commission.
Transpaco has been informed by the Competition Commission that its acquisition of Premier Plastics has been prohibited.
The company said that it is working through the Competition Commission’s response and is considering all available options.
Announced last year, Transpaco would acquire Premier Plastics from Bundeena No 2 Proprietary Limited as trustee for J Rubenstein Superannuation Fund, Sixone Proprietary Limited as trustee for Tony Rubenstein Trust and Alessandra Bragazzi.
Founded in 1991, Premier Plastics manufactures and supplies retail plastic carrier bags to fast-moving consumer goods retailers across South Africa.
Its primary supply focus is Gauteng and the surrounding inland regions.
It has a manufacturing facility in Tshwane where it produces retail plastic bags from both virgin and recycled raw materials, with its process including extrusion, printing, bagging and in-house recycling.
Transpaco previously said the deal offers the group an attractive opportunity to expand its market presence, especially in the retail and wholesale customer sectors.
The group said its business model closely aligns with Premier’s and that the acquisition is expected to enhance its ability to serve customers.
It was also drawn to Premier’s self-sufficient management team, with senior management having an average of 30 years’ experience in operating the business.
It also noted that Premier had strong growth prospects with opportunities to further expand local and export markets.
The purchase consideration payable for Premier Plastics is R128 million, less certain adjustments, plus interest calculated from the effective date to the closing date at prime overdraft rates.
The consideration includes a premium of R29.4 million over the book value of the net assets acquired.
For the financial year ending 30 June 2025, Premier generated turnover R503 million and a net profit after tax of R16.8 million.
Source: Business Tech
