The Competition Commission has recommended that the Competition Tribunal approve Shoprite Checkers’ proposed acquisition of PicardiRebel, subject to certain conditions.

PicardiRebel is one of South Africa’s longest-running liquor retail chains, with more than 45 years of experience in the industry.

The business has stores across eight provinces, including the Western Cape, Eastern Cape, Gauteng, KwaZulu-Natal, Mpumalanga, Limpopo, Northern Cape and Free State.

Its operations include physical bottle stores and an online direct-to-consumer platform offering wine, beer and premium spirits to customers nationwide.

The Commission has supported the proposed acquisition, subject to conditions aimed at addressing public-interest considerations.

Shoprite Checkers falls under Shoprite Holdings, which owns and operates a range of businesses in South Africa and other Southern African markets.

The group’s consumer-facing operations span supermarkets, furniture retail, cellular technology, liquor outlets, ticketing, hospitality and pharmaceutical services.

For the purposes of assessing the proposed merger, the Commission focused on the parties’ activities in the liquor retail sector.

Through its LiquorShop brand, Shoprite sells a selection of local and international alcoholic and non-alcoholic beverages. Its liquor outlets are typically situated alongside, or near, its supermarkets.

PicardiRebel, meanwhile, operates a network of retail liquor stores as well as one wholesale liquor outlet across South Africa.

Although the two businesses operate in the same market, the Competition Commission found that the acquisition is unlikely to substantially reduce or prevent competition in any relevant market.

As part of the conditions addressing public-interest concerns, the combined business will be required to undertake capital investment.

This includes refurbishing PicardiRebel’s liquor stores within a specified timeframe after the transaction’s implementation.