Competition Commission urges Tribunal to approve TFG's acquisition of Jet stores
The Foschini Group acquisition of Jet from Edcon is pending the Competition Tribunal's approval.
The Competition Commission has recommended that the Competition Tribunal conditionally approve The Foschini Group’s proposed transaction to acquire Jet stores.
TFG put an offer to buy Jet from troubled Edcon for R480 million and announced in August that it had concluded a purchase agreement.
“The Commission found that the proposed transaction is unlikely to result in a substantial prevention or lessening of competition in any relevant markets,” the Competition Commission said in a statement. “The Commission and the merging parties have agreed on merger conditions.”
The conditions include ensuring that TFG retains at least 381 Jet stores and the employment of at least 4,664 Jet employees from Edcon.
“The merging parties have also committed to making efforts to increase the number of Jet stores that will be retained post-merger,” the commission added.
TFG has agreed to give preference to eligible Edcon employees, should vacancies arise in the Jet business for three years from the implementation date.
“The merging parties have also made commitments to try to increase their procurement of locally produced inventory going forward,” the commission said.