The Competitors Fee mentioned in a press release that it “has advisable that the Competitors Tribunal approve the proposed transaction” with out circumstances.
“The fee discovered that the proposed transaction is unlikely to lead to a considerable prevention or lessening of competitors in any related markets. The fee additional discovered that the proposed transaction doesn’t elevate any public curiosity considerations,” it added.
Durban-headquartered Mr Worth first introduced the shock all-cash provide for Cape City-based Yuppiechef in mid-March. The deal is valued at round R500-million.
The Competitors Fee famous in its assertion that whereas Mr Worth is an “omnichannel” retail enterprise, it “sells a small proportion of its merchandise by way of on-line gross sales channels (on-line shops, the MRP app and Fb)”.
“Numerous Mr Worth shops serve a various vary of shoppers throughout all LSM classes. Of significance to the proposed transaction are the actions of Mr Worth Group in relation to Mr Worth House and Sheet Avenue,” mentioned the fee.
“Mr Worth House is a mass-market homeware retailer that sells a spread of latest homeware and furnishings. Mr Worth House has 183 shops in South Africa. Sheet Avenue is a homeware retailer providing a variety of core and trend merchandise throughout the bed room, front room and toilet segments. Sheet Avenue has 322 shops in South Africa,” it added.
Yuppiechef is a South African retailer, centered on the provision of kitchen and homeware, furnishings, and home equipment, primarily by way of its web site, the fee mentioned. “Yuppiechef operates seven brick-and-mortar shops, in addition to a wholesale division, which develops and imports branded items, primarily kitchenware, for wholesale distribution to retail prospects in South Africa.”
A privately owned enterprise, Yuppiechef was co-founded by Andrew Smith and Shane Dryden in 2006. In recent times, the corporate started opening shops at purchasing centres as a part of a transfer to rework into an omnichannel retail enterprise.
The Mr Worth acquisition will see the founders stay concerned. Nonetheless, the JSE-listed group has hinted at extending the Yuppiechef retailer community past its present Western Cape and Gauteng presence.
Yuppiechef may also increase Mr Worth’s on-line retail growth in opposition to the likes of TFG’s upmarket @house chain and pure-play on-line retailer Takealot.com.
“The acquisition consideration, which represents roughly 1% of market capitalisation, will probably be settled in money,” Mr Worth mentioned in March.
“The focused efficient date is topic to the fulfilment of each regulatory and industrial suspensive circumstances which incorporates competitors authority approval,” the group added.
- This text was initially revealed on Moneyweb and is used right here with permission