Mr Price gets green light to acquire decades-old family retail business

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Mr Price store front .(Supplied - Mr Price Group)
Mr Price store front .(Supplied - Mr Price Group)
Mr Price Group

The Competition Tribunal has approved the merger between Mr Price and Power Fashion in a deal worth some 4% of Mr Price's market capitalisation on Friday.

The tribunal said the deal has been approved with conditions that include Power Fashion maintaining or improving its current level of locally procured goods and services; and that Power Fashion participates in the Department of Trade Industry (DTIC) and Competition Commission's Retail, Clothing, Textile, Footwear and Leather (R-CTFL) Master Plan initiative along with the rest of the Mr Price Group.

The DTIC initiative seeks to increase the share of local retail sales of locally manufactured clothing and footwear to 65% by 2030.

The tribunal said the transaction is unlikely to substantially prevent or lessen competition in any market in SA.

The Power Fashion group was founded by the Otto family 65 years ago in Swaziland trading in clothing and footwear. The Ottos have singlehandedly grown the brand to its current 170 stores spanning across southern Africa.

Mr Price recently also acquired online homeware retailer Yuppiechef to augment its online offering.

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