Mr Price approved to acquire Power Fashion
Mr Price and Power Fashion merger has been approved by the Competition Tribunal.
The merger of Mr Price and Power Fashion has been approved by the Competition Tribunal in a deal worth approximately four percent of Mr Price’s market capitalisation.
The deal has been approved with conditions such as Power Fashion maintaining or approving its current level of locally produced goods and services, and Power Fashion participating in the Department of Trade, Industry and Competition’s (DTIC’s) Retail, Clothing, Textile, Footwear, Leather (R-CTFL) Master Plan initiative with the rest of the Mr Price Group.
The initiative aims to increase the share of retail sales of locally manufactured clothing and footwear to 65 percent by 2030.
Value fashion retailer Power Fashion, which was founded 65 years ago by the Otto family in Eswatini (formerly Swaziland) currently has 160 corporate stores in South Africa, Lesotho and Eswatini. The retailer also has a staff complement of more than 1,600 employees, Power mainly sells a mix of home-grown and well-known fashion and footwear brands.
Mr Price recently acquired Yuppiechef, an online homeware retailer, to expand its online offering.