Competition Commission probes Premier over canning factory closure

The Competition Commission has launched an investigation into whether Premier Group’s decision to close its fruit canning factory at Tulbagh, Western Cape breaches merger conditions attached to its recent acquisition of Rhodes Food Group (RFG). Farmers warn the move could trigger thousands of job losses and devastate South Africa’s canned fruit industry.

The investigation comes just months after the Competition Tribunal approved Premier’s takeover of RFG, subject to conditions designed to protect jobs and support public interest initiatives. Premier undertook not to retrench employees as a result of the merger for three years after implementation and committed to increasing spending on enterprise and supplier development over the same period.

Competition Commission spokesperson Siya Makunga confirmed that the watchdog was examining whether Premier’s planned closure of Fruit Products Western Cape (FPWC) in Tulbagh has implications for those merger commitments.