Premier Foods said it is seeking alternative uses for its Tulbagh Cannery, which it shut down shortly after acquiring it in a merger with RFG Holdings.<\/p>\n\n\n\n
“Premier provided generous support to the employees and the fruit producers, [and] will continue to seek alternative business opportunities to repurpose the facility,” the company said.<\/p>\n\n\n\n
In March 2026, the Competition Commission conditionally approved the merger of Premier Foods and RFG Holdings, valued at approximately R6.5 billion.<\/p>\n\n\n\n
As part of the merger, the commission recommended certain conditions to address public interest concerns, including employment protections.<\/p>\n\n\n\n
Following the completion of the merger, Premier shut down the Tulbagh cannery in the Western Cape, which formed part of RFG’s portfolio.<\/p>\n\n\n\n
In response, the Competition Commission said it would move to revoke approval of the merger and filed an application with the Competition Tribunal.<\/p>\n\n\n\n
The commission said in October that the merger had been based on assurances that no facilities would be closed or disposed of.<\/p>\n\n\n\n
\u201c[The companies] repeated this assurance before the Competition Tribunal approved the transaction, confirming that they did not contemplate closing, integrating or consolidating their respective production facilities,\u201d it said in October.<\/p>\n\n\n\n
However, four months after the merger, Premier told the Commission it intended to close the cannery, citing long-term structural issues in the global market.<\/p>\n\n\n\n
The commission argued that the closure would significantly affect competition and employment in the region.<\/p>\n\n\n\n
\u201c[The factory] is a significant regional employer, and its proposed closure would affect more than 400 permanent and fixed-term employees, as well as thousands of seasonal workers across the broader agricultural value chain,\u201d the commission said.<\/p>\n\n\n\n
In its latest interim results, Premier Foods said the commission’s move to revoke the merger approval was “unrealistic”.<\/p>\n\n\n\n
It is our view that for the Tribunal Appeal to undo the merger is not realistic,” the company said.<\/p>\n\n\n\n
“Merger conditions cannot be changed post-approval, and a strong causal link needs to exist between the merger and subsequent decisions to be merger-related.”<\/p>\n\n\n\n
“There was no contemplation of closure prior to the merger approval. As such, there have been no merger-related retrenchments, only voluntary separation agreements which were specifically allowed.”<\/p>\n\n\n\n
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