Business / Companies
TM, Pick 'n' Pay deal given thumps up by Competition Commission
02 Dec 2011 at 02:02hrs | Views
THE Competition and Tariff Commission has given Pick 'n' Pay permission to increase its equity in TM Supermarkets to 49 percent. The South African group will invest US$13 million.
Save for the Competition and Tariff Commission, the regulatory authorities have now approved the Pick n Pay investment into TM Supermarkets, paving the way for Pick n Pay to increase its shareholding in TM Supermarkets from 25% to 49%. This investment will unlock opportunities for TM Supermarkets.
Pick 'n' Pay - which manages more than 700 stores in South Africa, Zambia, Angola and Mozambique - already holds 25 percent in the TM Supermarket chain.
The deal had been approved by the Reserve Bank of Zimbabwe and the Youth Development, Indigenisation and Empowerment Ministry. After meeting the various requirements set by the Ministry of Youth Development, Indigenisation and Empowerment, Meikles was accorded its indigenous status and is now in compliance with the Empowerment Act. The Company will now be in a position to raise capital on external markets and to pursue projects that have been held in abeyance pending the granting of this status. The Board thanks all stakeholders and Government for their assistance in this important matter.
The first Pick 'n' Pay branch will be opened in the first half of 2012. The branch, formerly TM Kamfinsa, is currently being refurbished and upon completion will trade under the Pick 'n' Pay brand.
The exposure visits by TM staff to PnP outlets in the region will assist staff in acquiring new retail skills and assist in uplifting the store's standards.
In addition, TM will leverage on the PnP logistical infrastructure, including the supply chain, warehousing and distribution with minimal investment.
TM will be able to ride on the back of PnP's creditworthiness when dealing with SA suppliers. The extension of credit to TM would allow for adequate stocking of TM and PnP outlets in Zimbabwe.
It is also the intention of TM/PnP to offer franchising to the local operators who would like to use the PnP brand. The franchises would have access to the supply chain, skills and all the other advantages that come with being part of one of the biggest retailers in the region.
The franchise will create opportunities for the local businesses and when done properly, would lead to growth of the sole traders and creation of employment.
PnP will be exposed to the quality of local products and where these meet its standards, opportunities for local industry to start or increase their exports into the markets serviced by PnP.
Save for the Competition and Tariff Commission, the regulatory authorities have now approved the Pick n Pay investment into TM Supermarkets, paving the way for Pick n Pay to increase its shareholding in TM Supermarkets from 25% to 49%. This investment will unlock opportunities for TM Supermarkets.
Pick 'n' Pay - which manages more than 700 stores in South Africa, Zambia, Angola and Mozambique - already holds 25 percent in the TM Supermarket chain.
The deal had been approved by the Reserve Bank of Zimbabwe and the Youth Development, Indigenisation and Empowerment Ministry. After meeting the various requirements set by the Ministry of Youth Development, Indigenisation and Empowerment, Meikles was accorded its indigenous status and is now in compliance with the Empowerment Act. The Company will now be in a position to raise capital on external markets and to pursue projects that have been held in abeyance pending the granting of this status. The Board thanks all stakeholders and Government for their assistance in this important matter.
The first Pick 'n' Pay branch will be opened in the first half of 2012. The branch, formerly TM Kamfinsa, is currently being refurbished and upon completion will trade under the Pick 'n' Pay brand.
The exposure visits by TM staff to PnP outlets in the region will assist staff in acquiring new retail skills and assist in uplifting the store's standards.
TM will be able to ride on the back of PnP's creditworthiness when dealing with SA suppliers. The extension of credit to TM would allow for adequate stocking of TM and PnP outlets in Zimbabwe.
It is also the intention of TM/PnP to offer franchising to the local operators who would like to use the PnP brand. The franchises would have access to the supply chain, skills and all the other advantages that come with being part of one of the biggest retailers in the region.
The franchise will create opportunities for the local businesses and when done properly, would lead to growth of the sole traders and creation of employment.
PnP will be exposed to the quality of local products and where these meet its standards, opportunities for local industry to start or increase their exports into the markets serviced by PnP.
Source - Business Herald
