By Zuko Komisa
The Competition Commission has recommended that the Competition Tribunal approve Mr Price’s deal to acquire Studio 88.
Retailer Mr. Price revealed in April that it had signed a deal to pay RMB Ventures and the Studio 88 Group’s present management R3.3 billion to acquire 70% of Blue Falcon, the company that owns the Studio 88 group of companies.
Kaya Biz with Gugulethu Mfuphi spoke to Siyabulela Makhunga – Competition Commission Spokesperson
LISTEN TO THE FULL CONVERSATION HERE:
Makhunga said it was important for the process of the assessment of the sale to be done.
“It is important to highlight that in terms of Section 12A sub section 1A and B of the Act, we are directed to make assessments, control of merges, both of as a commission and a tribunal whether or not mergers are likely to substantially present or lessen competition.”
This is done by assessing sectors that are set out in those applications, but also it is important to highlight that post the amendment to say that there are no substantial public interest issues that are raised by these measures, these include job losses, black economic empowerment, as well as beneficiation by historically disadvantaged persons” says Makhunga
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For the fiscal year that ended in September 2021, The Studio 88 Group, an independent retailer of branded leisure, lifestyle, and sporting apparel and footwear in South Africa generated revenue of R5.6 billion.
The company owns and manages retail stores that sell apparel, footwear, and accessories and does business with brands like Studio 88, SideStep, Skipper Bar, and John Craig.
According to the Commission, it is doubtful that the proposed merger will significantly diminish or prevent competition in any relevant markets. The Commission further determined that there are no issues of public interest raised by the proposed transaction.
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