Competition Tribunal to hear Shoprite merger

The Competition Tribunal will on Monday weigh up a transaction in which Shoprite Checkers, a wholly owned subsidiary of Shoprite Holdings (SHP), intends to acquire the entire shareholding in Metcash Seven Eleven as well as a part of the Friendly Distribution Division of Metcash Trading Africa.

The Competition Commission assessed the merger and has recommended that the Competition Tribunal approve it on condition that Metcash find alternative employment for the employees who stand to be retrenched after the merger as a result of internal restructuring in Metcash, and to do the same for employees who have applied for voluntary retrenchment unless Metcash accepts their applications.

The Shoprite group of companies mainly comprises various supermarkets and stores including Shoprite, Shoprite Usave, Checkers, Checkers Hyper, OK Power Express, House and Home, Hungry Lion and the OK Franchise Division. These stores retail a wide range of fast moving consumer goods such as food, home ware, clothing, cellular telephone products and a number of value added retail services.

Metcash Seven Eleven is a franchisor of the Seven Eleven and the Friendly Seven Eleven franchise stores. Friendly Distribution — which falls within Metcash Trading Africa — consists of various large distribution centres located throughout South Africa to provide support to the franchise stores within the group.

According to the merging parties the proposed merger is mutually beneficial in that Shoprite, through its OK Franchise Division, will expand its business operations by entering into more franchise arrangements and will benefit from the economies of scale this opportunity presents. Metcash Trading Africa is selling its interest as part a group restructuring plan.

The Commission assessed the merger and concluded that it was unlikely to significantly lessen competition in the various markets impacted by the merger. However, following employment concerns raised by Saccawu, Metcash undertook to find alternative employment for employees yet to be retrenched and to do the same for employees who have applied for voluntary retrenchment, unless Metcash accepts their applications.

Accordingly the commission has recommended that the tribunal approve the merger with the employment related condition. — I-Net Bridge

These are unprecedented times, and the role of media to tell and record the story of South Africa as it develops is more important than ever. But it comes at a cost. Advertisers are cancelling campaigns, and our live events have come to an abrupt halt. Our income has been slashed.

The Mail & Guardian is a proud news publisher with roots stretching back 35 years. We’ve survived thanks to the support of our readers, we will need you to help us get through this.

To help us ensure another 35 future years of fiercely independent journalism, please subscribe.

Advertisting

Stella set to retain her perks

Communication minister will keep Cabinet perks during her two months of special leave

Not a sweet deal, Mister

Mister Sweet workers say they will not risk their health, and the lives of others, to continue producing and packaging confectionaries

Covid-19 grounds Nigeria’s medical tourists

The country’s elites, including the president, travelled abroad for treatment but now they must use the country’s neglected health system

Nehawu launches urgent court bid over protective gear for health...

The health workers’ union says the government has rebuffed its attempts to meet about mitigating risks to workers

Press Releases

Rahima Moosa Hospital nursing college introduces no-touch facial recognition access system

The new system allows the hospital to enrol people’s faces immediately, using artificial intelligence, and integrates easily with existing access control infrastructure, including card readers and biometrics

Everyone’s talking about it. Even Kentucky

Earlier this year South African fried chicken fast-food chain, Chicken Licken®, launched a campaign for their wallet-friendly EasyBucks® meals, based on the idea of ‘Everyone’s talking about it.’

New energy mix on the cards

REI4P already has and will continue to yield thousands of employment opportunities

The online value of executive education in a Covid-19 world

Executive education courses further develop the skills of leaders in the workplace

Sisa Ntshona urges everyone to stay home, and consider travelling later

Sisa Ntshona has urged everyone to limit their movements in line with government’s request

SAB Zenzele’s special AGM postponed until further notice

An arrangement has been announced for shareholders and retailers to receive a 77.5% cash payout

20th Edition of the National Teaching Awards

Teachers are seldom recognised but they are indispensable to the country's education system

Awards affirm the vital work that teachers do

Government is committed to empowering South Africa’s teachers with skills, knowledge and techniques for a changing world