Mr Price gets Power Fashion go-ahead

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Mr Price gets Power Fashion go-ahead

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Published Date: 2021-03-31 | Source: Stephen Gunnion | Author: Stephen Gunnion

Mr Price gets Power Fashion go-ahead

The transaction to acquire the 170-store retailer becomes effective tomorrow after it received competition authority approval.

Mr Price's acquisition of Power Fashion will become effective from tomorrow after it received all approvals required to buy the Durban-based retailer. The value retailer says all suspensive conditions, including approval by the SA and eSwatini competition authorities, have been fulfilled.

Mr Price announced the deal, estimated to be worth about R1.6-billion, in November. It is aimed at expanding its presence in the mid to lower end of the retail market through Power Fashion's 170 stores across Southern Africa. Strategic research undertaken last year identified opportunities for growth in South Africa, both organic and acquisitive. The price-value market in the apparel segment in which Power Fashion operates was one such segment with attractive growth potential, it said.

The existing Power Fashion management team and employees will transfer to the Mr Price Group on the effective date of the transaction. As previously indicated, Power Fashion's majority shareholder and CEO, Noel Otto, will retire but will consult to the newly appointed Power Fashion managing director for a period to provide continuity.

Earlier this month, Mr Price also announced its entry into the higher LSM (living standards measure) market with the acquisition of kitchen and homeware retailer and wholesaler Yuppiechef in a deal estimated to be worth about R470-million.

Mr Price's shares closed 2% down at R194.09 yesterday.





1 Comments

Jaco Nel 2 weeks ago

@Philani Sikho more like R9.4m per outlet



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