Commission recommends approval of Premier, RFG merger
The Competition Commission has recommended that the Competition Tribunal approve JSE-listed consumer packaged goods company Premier Group’s proposed acquisition of RFG Holdings – a producer of convenience meals and canned foods.
Premier has proposed acquiring all of RFG’s issued shares through a share-swap transaction valued at about R5.7-billion, which will result in RFG being delisted from the JSE.
The merger will combine Premier’s portfolio of household names in bread, wheat flour, maize meal, pasta, rice, biscuits, sugar confectionary, mageu and beverages, sanitary care and animal feeds with RFG’s long-life and fresh convenience foods including pies, dairy products, fruit juice, purees and baby foods, with brands that include Rhodes, Bisto, Hinds, Squish, Mama’s Pies, Bull Brand and Today.
The commission says the proposed transaction is unlikely to substantially lessen or prevent competition in any market.
To address employment concerns, both companies have undertaken not to retrench any employees as a result of the merger for a period of three years.
Premier also commits to increasing the merged company’s yearly spend on enterprise and supplier development initiatives over a period of three years from the merger implementation date.
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