The Competition Commission of South Africa (CCSA) held its ordinary meeting on Tuesday 02 August 2022, to review and take decisions on matters brought before the Commission by members of the public and corporate applicants, in terms of the Competition Act (89 of 1998) as amended. These matters include but are not limited to complaints, mergers, and acquisitions.
Pick n Pay Retailers (Pty) Ltd (“PnP Retailers”)/ Pick n Pay Primrose Family Store (“PnP Primrose”)
The Commission has approved the proposed transaction whereby PnP Retailers acquired PnP Primrose, without conditions. The primary acquiring firm, PnP Retailers is controlled by Pick n Pay Stores Ltd (“Pick n Pay”). Through PnP Retailers, PnP controls and operates retail stores in South Africa and further in 6 (six) Southern African countries (Botswana, Lesotho, Namibia, Swaziland, Zambia, and Zimbabwe). In South Africa, PnP controls mainly “Pick n Pay” and “Boxer” branded retail outlets, available in multi-format businesses including fast-moving consumer goods (“FMCG”), clothing, alcoholic beverages, pharmaceuticals, etc.
Pick n Pay is a multi-format, multi-channel retailer which operates stores in a variety of formats ranging from large hypermarkets to smaller convenience stores. PnP retail stores are operated either as corporateowned or franchise stores. The Target Firm operates in line with a broader Pick n Pay Group’s offering and is characterised and branded as Pick n Pay Supermarket, Pick n Pay Clothing, and Pick n Pay Liquor.
The Commission found that the proposed transaction is unlikely to result in a substantial prevention or lessening of competition in any relevant markets. The Commission further found that the proposed transaction does not raise any public interest concerns.
Urusbid Restricted Limited (“Urusbid”)/ Unifruitti Investments Limited (“Unifrutti Investments”)
The Commission has approved the proposed transaction whereby Urusbid acquired 70% of Unifruitti Investments, without conditions. The primary acquiring firm is Urusbid, a company established under the laws of the Abu Dhabi Global Market. Urusbid is ultimately controlled by Abu Dhabi Development Holding Company PJSC (“ADQ”), a company incorporated by the laws of the United Arab Emirates (“UAE”). ADQ is wholly owned and controlled by the Government of Abu Dhabi. Urusbid is a special purpose vehicle established for the sole purpose of entering into the proposed transaction and, as such, it does not control any firms in South Africa.
ADQ controls 12 (twelve) firms in South Africa. Urusbid, and ADQ, together with all firms they control shall collectively be referred to as the Acquiring Group. ADQ is a holding company with investments across several sectors in Abu Dhabi's economy, including food and agriculture, aviation, financial services, healthcare, industries, logistics, media, real estate, tourism and hospitality, transport, and utilities. The primary target firm is Unifrutti Investments.
In South Africa, Unifrutti Investments operates various packing and farming operations located in the Eastern Cape, Limpopo, and the Western Cape, at which it farms and packages various citrus fruit and table grapes. Unifrutti Investments sources and trades stone fruit and pears, and exports citrus, deciduous and sub-tropical fruit to the global market.
The Commission found that the proposed transaction is unlikely to result in a substantial prevention or lessening of competition in any relevant markets. The Commission further found that the proposed transaction does not raise any public interest concerns.
Raps Stores (Pty) Ltd (“Raps”)/ Westend SuperSpar and Westend Tops (“Target Firms”)
The Commission has approved the proposed transaction whereby Raps acquired the Target Firms, without conditions. The primary acquiring firm is Raps, a private company incorporated in South Africa. All firms directly and indirectly controlled by Raps are collectively referred to as Acquiring Group.
The Acquiring Group is active in the operation of grocery and liquor retail businesses and owns certain Spar grocery and Spar Tops liquor retail businesses which are situated in Mpumalanga. The primary Target Firms are the businesses comprising of the Westend SuperSpar and Westend Tops.
The Target Firms comprise one Spar grocery, food, and general merchandise store and one Spar Tops liquor store located in Mpumalanga.
The Commission found that the proposed transaction is unlikely to result in a substantial prevention or lessening of competition in any relevant markets. The Commission further found that the proposed transaction does not raise any substantial public interest concerns.
