Premier Group clears final hurdle in RFG takeover valued at US$312M
Combined group to generate about US$1.5 billion (R28 billion) in annual revenue
SOUTH AFRICA – Premier Group has received final clearance to proceed with its acquisition of RFG Holdings, concluding a regulatory process that enables one of the largest recent transactions in South Africa’s packaged food industry.
Following the Competition Tribunal’s ruling, the deal moves forward under conditions that include a three-year restriction on job cuts and commitments to expand enterprise and supplier development initiatives.
As a result of the transaction, brands such as Bull Brand, Rhodes, Mama’s Pies and Bisto will join a portfolio that already includes Snowflake, Iwisa, Blue Ribbon and Mister Sweet, widening the company’s presence across multiple grocery segments.
The Tribunal concluded that the merger is unlikely to materially reduce competition in the affected product categories, clearing a key concern in a market where consolidation has drawn regulatory attention in recent years.
Scale and transaction structure
With the integration of RFG, the enlarged business is expected to deliver approximately US$1.5 billion (R28 billion) in annual revenue and about US$91 million (R1.7 billion) in profit, placing it among the largest diversified food producers in the country.
Under the terms of the agreement, Premier will issue one share for every seven RFG shares held, while fractional holdings will be settled in cash based on a reference price of US$1.18 (R22) per RFG share and US$8.25 (R154) per Premier share.
Market response and competition
Investor reaction has been positive since the transaction was first announced, with Premier’s share price increasing by 11% and RFG recording a 52% gain over the same period.
The combined entity is set to compete more directly with Tiger Brands, PepsiCo through its Pioneer Foods unit, Libstar, and RCL Foods across categories including staple foods, shelf-stable products, and prepared meals.
Meanwhile, businessman Christo Wiese remains the largest shareholder in Premier with an estimated 46% stake, while Brait retains roughly 18% after the company’s 2023 listing, and RFG continues to trade publicly after its earlier rebrand from Rhodes Food Group in 2014.
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