The Competition Commission has recommended that the Competition Tribunal conditionally approve The Foschini Group’s proposed transaction to acquire Jet stores.<\/p>\n
The Foschini Group, also known as TFG, put an offer to buy Jet from Edcon for a cash purchase consideration of R480 million. TFG announced last month that is had concluded a purchase agreement, reports said.<\/p>\n
The cash-strapped Edcon Holdings filed for bankruptcy protection in April after losing R2 billion during the hard lockdown to curb the spread of Covid-19, which has claimed almost 16 000 lives in South Africa.<\/p>\n
TFG is one of the foremost independent chain store groups in South Africa.<\/p>\n
The group has a diverse portfolio of 29 leading fashion retail brands offering clothing, jewellery, cell phones, accessories, cosmetics, luggage, sporting apparel and equipment, homeware, and furniture. It also offers insurance products.<\/p>\n
Meanwhile, the Jet division sells clothing, footwear, homeware, cosmetics, cellular and insurance products locally, and also has stores in\u00a0Botswana, Namibia, Lesotho and the kingdom of Eswatini.<\/p>\n
\u201cThe Commission found that the proposed transaction is unlikely to result in a substantial prevention or lessening of competition in any relevant markets.<\/p>\n
\u201cThe Commission and the merging parties have agreed on merger conditions,\u201d said the Commission.<\/p>\n
These include ensuring that the merging parties retain at least 381 Jet stores and the employment of at least 4,664 Jet employees from the target firm.<\/p>\n
\u201cThe merging parties have also committed to making efforts to increase the number of Jet stores that will be retained post-merger,\u201d said the Commission.<\/p>\n
The acquiring firm has agreed to give preference to eligible Edcon employees, should vacancies arise in the Jet business for three years from the implementation date.<\/p>\n
\u201cThe merging parties have also made commitments to try to increase their procurement of locally produced inventory going forward,\u201d the Commission said.<\/p>\n