Mr Price, Yuppiechef deal gets green light
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THE COMPETITION Commission (CompCom) recommended that the Competition Tribunal approve the acquisition of online premium kitchen and home store Yuppiechef by listed retailer Mr Price Group.
Mr Price, whose brands include Mr Price, Price Home, and Sheet Street, made the surprise announcement of the deal in March and did not disclose details of the transaction, but said the purchase consideration would represent approximately 1 percent of its market capitalisation, meaning that the value could be about R469 million. It said the deal would be be settled in cash.
The commission found that the proposed transaction was 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.
The commission said of importance to the proposed transaction were the activities of Mr Price Group in relation to Mr Price Home and Sheet Street.
Mr Price Home is a mass market homeware retailer and has 183 stores in South Africa, while Sheet Street is a homeware store offering a wide range of core and fashion products with 322 stores in South Africa.