The Commission claims that the transaction is “unlikely to substantially lessen or prevent competition in any market.”
The Commission has recommended that the Tribunal approves the proposed transaction whereby Pick n Pay Retailers intends to acquire PnP Plumstead, with conditions.
The primary acquiring firm, Pick n Pay Retailers, is a wholly owned subsidiary of Pick n Pay Stores Limited (“Pick n Pay”), a public company listed on the Johannesburg Securities Exchange (JSE).
Pick n Pay Retailers provides wholesale and retail of fast-moving consumer goods (FMCGs), including groceries, liquor, clothing and health and beauty products. Pick n Pay operates a multi-format, multichannel retail business through corporate-owned stores and franchise retail outlets.
The primary target firm is PnP Plumstead. PnP Plumstead is branded as a Pick n Pay Supermarket and operates as a Pick n Pay franchise in line with their multi-format offering. PnP Plumstead retails groceries, clothing (through “Pick n Pay Clothing”) and liquor (through “Pick n Pay Liquor”). PnP Plumstead also offers money market services.
“The Commission is of the view that the proposed transaction is unlikely to substantially lessen or prevent competition in any market,”
said the agency in its press release.
To address public interest concerns, the Acquiring Firm shall employ the employees of PnP Plumstead on no less favourable terms than those prior to the merger implementation date. In addition, the Acquiring Firm shall not retrench any employees of PnP Plumstead as a result of the merger.
Source: CompCom.co.za
