Wednesday, 13 July 2022 16:38

Competition watchdog gives thumbs up to Mr Price’s purchase of Studio 88.

Business Reporter.

Competition Commission has recommended that the Competition Tribunal approve Mr Price’s deal to acquire Studio 88 without conditions.

In April, retailer Mr Price announced that it has entered into a transaction agreement to acquire 70% of Blue Falcon, which owns the Studio 88 group of businesses, from RMB Ventures and the current management of the Studio 88 Group, for R3.3 billion.

The Studio 88 Group is an independent retailer of branded leisure, lifestyle and sporting apparel and footwear in South Africa, generating revenue of R5.6 billion for the financial year ended September 2021. It is a founder-led business that has been operating in Southern Africa since 2001.

The business owns and operates retail outlets that offer clothing, footwear and accessories, trading through Studio 88, SideStep, Skipper Bar, John Craig and other chains.

Its merchandise range is a mix of international brands, some of which are under exclusive license agreements, as well as private label ranges. The business operates through in excess of 700 stores, predominantly based in South Africa, which are positioned in central business districts‚ regional malls and rural high streets, and via its e-commerce platforms.

The Commission found that the proposed transaction is unlikely to result in a substantial prevention or lessening of competition in any relevant markets. The Commission further found that the proposed transaction does not raise any public interest concerns.