Premier CEO Says Competition Commission Case Could Bring Material Public-Interest Contribution

Premier CEO Kobus Gertenbach said the worst outcome of the Competition Commission's attempt to revisit its approval of the RFG acquisition would be a contribution towards the public interest large enough to be material to the group's earnings. Gertenbach told BusinessLIVE on Tuesday that undoing the merger is off the table.

Premier's Defence Against the Commission

Gertenbach said the enlarged food producer could be required to make a contribution if the Competition Tribunal finds against it. "The worst-case scenario is that we have to make some form of contribution towards the public interest," he said, adding "it's going to be material for the overall group's results". He said it was difficult to put a figure on the potential contribution.

The dispute centres on the commission's attempt to overturn its approval of Premier's acquisition of RFG, completed in March. The regulator alleges Premier and RFG discussed the possible closure of Fruit Products Western Cape's Tulbagh cannery before the merger was approved but did not disclose this during the merger process.

Premier has denied the closure was contemplated before the acquisition was completed. It maintains the decision was unrelated to the merger and argues the commission does not have jurisdiction to revisit the matter in the way it has sought to. Gertenbach said Premier had submitted sworn affidavits from six to eight people in the business disputing the allegation the closure had been considered before the merger.

An urgent application brought by the commission was resolved through an agreement just before Premier's interim results were released on Tuesday. Under the agreement, Premier will keep the Tulbagh facility in its present condition and will not dispose of its assets while the main case proceeds.

Tulbagh Cannery Losses and Farmer Payments

According to akta.pro company records, Premier acquired 100% of RFG Holdings for R6.5 billion in March 2026, adding Rhodes Quality, Bull Brand, Hinds, Pakco and Mama's Pies and expanding Premier's portfolio to 52 brands across 44 sites, with combined group revenue of approximately R28 billion. The same records describe Premier as a South African FMCG manufacturer operating 44 production sites across Southern Africa with 52 brands spanning milling, baking, confectionery, personal care, beverages and culinary products, serving 60,000 customers daily.

Premier has said reopening the cannery is extremely unlikely. It expects the cannery to remain a major financial burden, estimating losses of R250m-R300m in the 2027 financial year. This marks a sharp reversal from two years ago, when the operation made a modest profit of R18m. Its performance has since deteriorated, with losses of R100m-R150m in the 2026 financial year.

Premier has previously said the closure would cost about R200m, most of which has already been accounted for in its results. The group has also struck agreements with 82 farmers, paying out about R67m to remove peach orchards and repurpose the land.

Earlier Competition Challenges to the RFG Deal

The Competition Commission asked the Competition Tribunal to revoke the R6bn Premier-RFG merger after Premier disclosed plans to close RFG's Tulbagh cannery, potentially losing 400 jobs, BusinessLIVE reported in October 2026. The commission applied to revoke the merger approval, alleging nondisclosure of plans to close the cannery, which would remove a competitor and threaten over 400 jobs, BusinessLIVE reported later that month.

Tribunal Hearing Expected Next Year

The tribunal hearing is expected to take place next year, possibly from March, according to Gertenbach, who confirmed the date had not been set. Premier hopes to resolve the dispute before it reaches a hearing. "I'm still hoping that maybe we can even find a way to come to an amicable resolution that doesn't involve actually having a hearing at the tribunal," Gertenbach said.