The proposed acquisition of Fruit & Veg City by national retailer Pick ‘n Pay has been put on hold by the Competition Commission.
The commission recently recommended that the Tribunal prohibit the buyout as it would result in the companies holding an unfair advantage in the retail market for fresh food. It would also remove the incentive for competition, as the companies are currently competitors in the fresh produce retail market.
“The commission has concluded that the proposed acquisition is likely to substantially prevent or lessen competition in the market for fresh food. We have highlighted the importance of vigorous competition in the retail market to ensure product choice and competitively priced food products for consumers,” said the commission’s compliance manager Tembinkosi Bonakele.
The matter has been referred to the Competition Tribunal, and will be decided following a public hearing.
Pick ‘n Pay said it could not yet comment on the matter. “We are awaiting documentation from the Commission’s findings, after which we will weigh up the options available to us,” said CEO Nick Badminton.Pick ‘n Pay had planned to buy the Fruit & Veg City chain, but intended to allow the chain to operate under it’s existing management, and all supplier contracts were set to remain intact. – Gwenda van Zyl
