Premier Group and the Competition Commission have abandoned an urgent hearing on closing the Tulbagh fruit-canning factory. The dispute will now move to the Competition Tribunal next year.
The conflict stems from the commission’s bid to revoke Premier’s R6.5bn acquisition of RFG Holdings. The deal was finalized in March 2026.
Regulators allege Premier and RFG withheld information about closing the Western Cape facility during the review. According to the Competition Commission, an investigation found the companies discussed closing the factory before the merger was approved. This occurred despite inquiries about their manufacturing plans.
“The integrity of South Africa’s merger-control regime depends on merger parties making full, frank and honest disclosure of all material information,” said Competition Commissioner Doris Tshepe.
Group CEO Kobus Gertenbach said both parties agreed to drop the urgent hearing over the weekend. The commission’s main case remains outstanding.
Premier maintains the decision to close the plant followed a sharp drop in global market conditions after the merger. The company cited an “implosion” of the global canned-fruit market.
Factors included a stronger rand and a large Greek fruit harvest. The company also pointed to the bankruptcy of Del Monte and increased competition from Chinese producers. Demand for canned fruit softened over several years. Input costs rose. The Tulbagh and Langeberg canneries operated at below 50% capacity.
“South Africa can really only sustain one major fruit canning operation that can compete globally,” Gertenbach said.
Premier reported revenue of R14.3bn for the six months ended September 2026. This was a 38.8% increase, largely due to the inclusion of RFG. Operating profit rose 52.5% to R1.7bn. Premier said there were no merger-related retrenchments. The closure involved voluntary separation agreements which it said were “specifically allowed.”
The facility has operated since the 1950s. Its closure concerns the local economy in Tulbagh. Organiser Nobulumko Nkondlo said the closure could affect thousands of seasonal workers, citrus farmers, and processors.
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Premier concluded voluntary separation agreements with 403 employees. This cost about R40m. The company also committed R67m to help 82 farmers transition to alternative crops. It is considering uses for the Tulbagh property to create jobs. It is also looking at R40m in support for the Langeberg facility.
“We remain committed to supporting the affected farmers and employees as they transition to new opportunities,” Gertenbach said.