Shoprite Checkers to buy one of South Africa’s biggest liquor store businesses

The Competition Commission has recommended that the Competition Tribunal approve a transaction where Shoprite Checkers will buy PicardiRebel.

PicardiRebel is one of South Africa’s oldest and most established retail liquor chains, having operated for over 45 years.

It has a nationwide presence across the Western Cape, Eastern Cape, Gauteng, KwaZulu-Natal, Mpumalanga, Limpopo, Northern Cape, and Free State.

It operates brick-and-mortar bottle stores alongside a direct-to-consumer online platform, supplying wine, beer, and premium spirits nationwide.

The Competition Commission has given its support for Shoprite’s acquisition of PicardiRebel, subject to conditions.

Shoprite is controlled by Shoprite Holdings, which owns and operates several firms in South Africa and other Southern African countries.

It operates customer-facing brands including supermarkets, furniture stores, cellular technology, liquor stores, ticket sales, hospitality services, and pharmaceuticals.

Relevant to the proposed merger assessment are the Shoprite Group’s activities in relation to the retail of liquor.

Through its LiquorShop brand, the Shoprite Group offers a range of local and international alcoholic and non-alcoholic beverages.

Shoprite Checkers’ liquor stores are generally located adjacent to or close to its supermarkets.

PicardiRebel, in comparison, comprises retail liquor stores and one wholesale liquor store located throughout South Africa.

Despite the overlap, the Competition Commission said the transaction is unlikely to substantially lessen or prevent competition in any relevant market.

To address public-interest concerns, the merged entity will be required to commit capital expenditure.

This capital expenditure includes refurbishing the PicardiRebel liquor stores within a specified period following the implementation date.