Woolworths’ takeover of a R420 million-a-month company approved
The Competition Commission has approved Woolworths’ acquisition of In2Food, a privately owned prepared foods manufacturer, with conditions.
The deal was announced earlier this year, with Woolworths intending to acquire 100% of the company’s shares.
The Competition Commission has now recommended that the sale go ahead, with specifications to address competition and public concerns.
“The Commission has recommended that the Competition Tribunal approve the proposed transaction where Woolworths intends to acquire in2food, with conditions,” it said.
The commission said that Woolworths would have to continue procuring items from other companies for a set period after the acquisition.
“To address competition concerns, the acquiring firm shall continue to procure from competing suppliers for a set period of time after implementation of the merger,” the commission said.
The procurement of goods from competing companies was also outlined as a means to address public-interest concerns about the deal.
The commission also said neither company could retrench employees due to the acquisition, to address employment concerns.
“To address employment concerns, the merger parties shall not retrench any employees as a result of the merger for the duration of the moratorium period,” it said.
In2Food and Woolworths already have a longstanding relationship, with the ready-made food producer being a key supplier for the retailer.
The South African retail giant announced plans earlier this year to acquire 100% of In2Food’s shares and has steadily progressed with the deal.
The merger was officially filed with the Competition Commission on 18 March 2026, a day after Woolworths publicly announced the deal.
The deal was classified as a large merger, as In2Food is a significant player in the food industry and generates over R5 billion in annual revenue, amounting to R420 million per month.
Woolworths and In2Food
The relationship between Woolworths and In2Food started in the 1990s, with the retailer initially working with Interfruit and Lombardi Foods. These two companies then merged in 2010 to form In2Food.
Woolworths is In2Food’s largest customer, with its other clients comprising several local and international food groups.
The deal to strengthen Woolworths’ food business also comes after the company announced it would centre its operations on its grocery sector.
The group saw its strongest results in the last financial year in the food sector, while the clothing and beauty segments lagged behind.
The company attributed this to tougher economic conditions for many consumers, limiting their spending on luxury items.
Although Woolworths is purchasing the ready-made food producer outright, In2Food will continue to operate as an independent business.
Woolworths group CEO, Roy Bagattini, said the deal would also not have any large changes on the company’s existing food sourcing methods.
Our unique relationship with our suppliers is what differentiates us and is fundamental to delivering our premium food offering,” he said.
“This transaction further enhances the relationship we have with one of our most innovative suppliers, and will extend mutual benefits to our entire value chain and end-customers.”
“This transaction further enhances the relationship we have with one of our most innovative suppliers, and will extend mutual benefits to our entire value chain and end-customers.”
“This acquisition represents a compelling opportunity to bring a key strategic capability closer to the Woolworths Foods business, strengthening one of the core points of differentiation in our premium food offering.”
Woolworths also said the deal would help its earnings, with added value coming from operational efficiencies expected over time.
The purchase will be funded entirely from the retailer’s cash reserves, with no debt taken on to finance the merger.
Currently, neither group has announced how much Woolworths will spend to acquire the company.
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