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Johannesburg - The Competition Tribunal on Friday announced that it had approved two mergers, with amended conditions involving consumer distributor Massmart [JSE:MSM].
The first acquisition by Massmart was for the The Fruit Shop, The Fruit Spot and The Fruit Express, together referred to as Fruitspot.
Fruitspot is a wholesaler, processor and distributor of fresh fruit and vegetables to customers mainly in the hospitality and retail segments of industry.
The acquirer in the deal was Opiconsivia Trading, a wholly-owned subsidiary of Makro, a subsidiary of Massmart.
Through this transaction, Makro will expand its fresh produce offering.
"In the merger involving Massmart and Fruitspot, we require that the obligation to continue supplying Fruitspot's existing customers should apply to Massmart rather than Fruitspot," the tribunal ruled.
The Fruit Spot serves retailers including Spar (SPP) and Famous Brands (FSB), as well as the catering industry, and buys much of its produce directly from farmers.
The second acquisition was between Masscash and Rhino.
The acquiring firm in the transaction was Mystic Blue, a wholly-owned subsidiary of Masscash Retail.
Through this deal, Mystic Blue intends to acquire 16 Rhino stores mostly based in KwaZulu-Natal and the Eastern Cape.
With the completion of the deal, Masscash retail will have sole control over the Rhino Group.
Both parties to this deal operate in the wholesale and retail of grocery and liquor products however Rhino stores is mainly involved in the retail of groceries and liquor to low income customers.
Masscash stores, on the other hand, are generally classified as wholesalers and sell their grocery products through CBW, Jumbo and Makro.
The Masscash division also comprises retail and hybrid outlets such as Cambridge, Buy-Rite and Saverite, which also sell groceries, liquor and general merchandise to lower income customers.
"In the merger involving Masscash and Rhino, the tribunal required certain confidential amendments to the conditions recommended by the Competition Commission," the tribunal said in a statement.
Massmart is held 51% by US retailer Walmart.
The first acquisition by Massmart was for the The Fruit Shop, The Fruit Spot and The Fruit Express, together referred to as Fruitspot.
Fruitspot is a wholesaler, processor and distributor of fresh fruit and vegetables to customers mainly in the hospitality and retail segments of industry.
The acquirer in the deal was Opiconsivia Trading, a wholly-owned subsidiary of Makro, a subsidiary of Massmart.
Through this transaction, Makro will expand its fresh produce offering.
"In the merger involving Massmart and Fruitspot, we require that the obligation to continue supplying Fruitspot's existing customers should apply to Massmart rather than Fruitspot," the tribunal ruled.
The Fruit Spot serves retailers including Spar (SPP) and Famous Brands (FSB), as well as the catering industry, and buys much of its produce directly from farmers.
The second acquisition was between Masscash and Rhino.
The acquiring firm in the transaction was Mystic Blue, a wholly-owned subsidiary of Masscash Retail.
Through this deal, Mystic Blue intends to acquire 16 Rhino stores mostly based in KwaZulu-Natal and the Eastern Cape.
With the completion of the deal, Masscash retail will have sole control over the Rhino Group.
Both parties to this deal operate in the wholesale and retail of grocery and liquor products however Rhino stores is mainly involved in the retail of groceries and liquor to low income customers.
Masscash stores, on the other hand, are generally classified as wholesalers and sell their grocery products through CBW, Jumbo and Makro.
The Masscash division also comprises retail and hybrid outlets such as Cambridge, Buy-Rite and Saverite, which also sell groceries, liquor and general merchandise to lower income customers.
"In the merger involving Masscash and Rhino, the tribunal required certain confidential amendments to the conditions recommended by the Competition Commission," the tribunal said in a statement.
Massmart is held 51% by US retailer Walmart.
