Johannesburg – The Foschini Group (TFG) fell 1.17% on the JSE on Wednesday to close at R76.30 despite the listed homeware and fashion retailer getting the green light to purchase Edcon’s discount department store division, Jet Stores.
The Competition Tribunal on Wednesday approved TFG’s R480million acquisition of 371 Jet stores, with condition relating to employment and local procurement.
The tribunal ruled the transaction was unlikely to result in a substantial prevention or lessening of competition in any relevant markets.
It ruled that TFG is not permitted to retrench any employees for two years from the merger’s implementation date, saving thousands of jobs.
The tribunal ordered employees be transferred to TFG in accordance with the provision of section 197 of the Labour Relations Act.
It also ordered TFG to give preference to eligible Edcon employees should vacancies be open in the Jet business for three years from the merger implementation date
It added that the merged entity should ensure Jet Stores maintain at least the same ratio of procurement of apparel products from South African manufacturers and supplier as it did at the end of its preceding financial ye
