Competition Commission supports Mr Price’s R500 million acquisition of Yuppiechef
The commission believes the proposed deal is unlikely to significantly reduce or eliminate competition in the relevant markets.
The Competition Commission of South Africa (CCSA) has announced its support for Mr Price’s acquisition of Yuppiechef. In a statement, the CCSA said that it “has recommended that the Competition Tribunal approve the proposed transaction” without conditions.
“The commission found that the proposed transaction is unlikely to result in a substantial prevention or lessening of competition in any relevant markets. The commission further found that the proposed transaction does not raise any public interest concerns,” it added.
Although Mr Price is an “omni-channel” retailer, the CCSA noted that Mr Price “sells a small percentage of its products through online sales channels [online stores, the MRP app, and Facebook].
“Various Mr Price stores serve a diverse range of customers across all Living Standards Measurement [LSM] categories. Of importance to the proposed transaction are the activities of Mr Price Group in relation to Mr Price Home and Sheet Street,” it added.
Mr Price Home is a mass market homeware retailer that sells modern homeware and furniture. In South Africa, Mr Price Home has 183 stores. Sheet Street is a homeware store that specialises in core and fashion products for the bedroom, living room, and bathroom. South Africa has 322 Sheet Street stores.
Yuppiechef, founded in 2006, is a South African retailer with nearly 200 employees that primarily sells kitchen and homeware, furniture, and appliances through its website.
“The purchase consideration, which represents approximately 1% of market capitalisation, will be settled in cash,” Mr Price said in March.
“The targeted effective date is subject to the fulfilment of both regulatory and commercial suspensive conditions which includes competition authority approval,” the group added.