The Competition Commission has prohibited JSE-listed Transpaco’s proposed acquisition of Premier Plastics, blocking a R128 million transaction that would have expanded the packaging group’s footprint in South Africa’s retail plastics market.
Transpaco confirmed that it had been informed the transaction had been struck down and said it was assessing the Commission’s response while considering its available options. The deal, announced last year, involved the purchase of Premier Plastics from Bundeena No 2 Proprietary Limited, acting as trustee for the J Rubenstein Superannuation Fund, Sixone Proprietary Limited as trustee for the Tony Rubenstein Trust, and Alessandra Bragazzi.
Founded in 1991, Premier Plastics manufactures and supplies retail plastic carrier bags to fast-moving consumer goods retailers, with its primary market concentrated in Gauteng and surrounding inland regions. The company operates a manufacturing facility in Tshwane, producing plastic bags from virgin and recycled raw materials through extrusion, printing, bagging and in-house recycling processes.
The agreed purchase consideration of R128 million, subject to adjustments and interest at prime overdraft rates from the effective to closing date, included a premium of R29.4 million over the book value of the net assets acquired. For the financial year ended 30 June 2025, Premier reported turnover of R503 million and net profit after tax of R16.8 million.
The prohibition comes amid heightened scrutiny of consolidation in South Africa’s manufacturing and packaging sectors. Competition authorities have increasingly examined transactions in plastics and related industries due to concerns around market concentration, pricing power and barriers to entry, particularly in segments supplying major retailers.
Transpaco previously indicated that the acquisition would strengthen its position in the retail and wholesale segments, citing alignment between its business model and Premier’s operations, as well as the target’s experienced management team and expansion prospects in domestic and export markets.
According to the Competition Commission of South Africa, the regulator’s mandate includes assessing whether mergers are likely to substantially prevent or lessen competition, while also considering public interest factors such as employment and industrial development. The Commission has not yet publicly detailed the specific competition concerns underlying the decision.