Acquisition

South Africa's competition watchdog moves to unwind Premier-RFG food merger

What's the deal? South Africa's Competition Commission wants to reverse its own approval of the merger between Premier GroupDealroom has a profile for this one. Try Dealroom → and RFG HoldingsDealroom has a profile for this one. Try Dealroom →, two of the country's largest packaged-food producers. The commission says it was not told PremierDealroom has a profile for this one. Try Dealroom → intended to close RFG's fruit-canning plant at Tulbagh in the Western Cape.

Why now? The commission recommended the Competition Tribunal approve the deal without knowing about the planned closure. It now describes its push to unwind the merger as a highly unusual move.

What's at stake? The Tulbagh factory provides a route to market for about 200 farmers in the region and employs more than 400 people permanently. Its closure would also affect thousands of seasonal workers across the broader agricultural value chain.

What's Premier's position? Premier rejects any suggestion that it acted unlawfully, withheld material information, or sought to mislead the commission or the tribunal.

The signal: Regulators are increasingly weighing employment and supply-chain impacts, not just market concentration, when judging food-sector consolidation. Reopening an approved deal signals how far authorities may go to protect jobs and smallholder access to market.

Read more: algoafm.co.za

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