Premier Foods hits back at Competition Commission’s claims
The Competition Commission accuses Premier Foods of violating the conditions on which the merger of RFG was approved.
Premier Foods has rejected the Competition Commission's allegations that it considered closing the Fruits Products Western Cape (FPWC) plant during the Rhodes Food Group (RFG) merger process. The Commission filed an application to the Competition Tribunal on October 6, 2026, to revoke the approval of the merger, citing concerns about anti-competitive conduct.
The merger, initially approved in 2026 with conditions, stipulated that no retrenchments or factory closures would occur for a set period. Labour unions protested Premier Foods' decision to shut down the FPWC plant in Tulbagh, a plant the company now owns after integrating RFG into its Premier Culinary division. Premier Foods maintains that the closure decision was made after the merger and is unrelated to the merger process, citing declining global demand, pricing pressure, rising input costs, and US tariffs imposed last year.
The competition regulator alleges that Premier Foods failed to disclose the closure plans, potentially breaching the merger conditions, and is seeking the revocation of the merger approval. Premier Foods denies withholding information and asserts the closure occurred post-merger due to deteriorating operating conditions and market realities.
The tribunal will determine whether Premier Foods violated merger conditions, with potential fines reaching up to 10% of the company's annual turnover.
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