South Africa: Competition Commission gives green light for TFG-Tapestry deal
South Africa’s Competition Commission has recommended that the Competition Tribunal approve the proposed transaction whereby The Foschini Group (TFG) intends to acquire Tapestry Home Brands with conditions.
TFG entered into a sale and purchase agreement to acquire the entire issued share capital of Tapestry in March 2022. Private equity firms Westbrooke Investments and Actis will exit their shareholding in Tapestry as part of the transaction.
TFG is a chain-store group with a diverse portfolio of 30 fashion retail businesses offering clothing, jewellery, cellphones, accessories, cosmetics, luggage, sporting apparel and equipment, homeware, and furniture, from value to upper market segments.
Tapestry is a manufacturer and retailer of household textiles, furniture, bed sets, and mattresses. All of the Tapestry Group’s upstream activities in respect of its home textiles, furniture, bed sets and mattress manufacturing activities are dedicated to supplying the needs of its downstream retail businesses. The Tapestry Group also offers a portfolio of popular home furnishing consumer brands such as Dial-a-Bed, the Bed Store, Volpes, and Coricraft.
The Commission found that the proposed transaction is unlikely to result in a substantial prevention or lessening of competition in any relevant markets. Regarding public interest, the Commission and the merging parties have agreed on a set of conditions that will ensure that the merging parties’ expansions plans are implemented and that the level of employment in the merged entity is increased.
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