Competition Commission blocks Transpaco’s $8 million Premier Plastics acquisition

South Africa’s Competition Commission has blocked JSE-listed manufacturer Transpaco Limited’s proposed 8 million acquisition of Premier Plastics Proprietary Limited, delivering a regulatory setback to the packaging group’s retail plastics expansion strategy.

The R128 million ($7.98 million) transaction, announced in 2025, would have seen Transpaco acquire Premier Plastics from Bundeena No 2 Proprietary Limited, Sixone Proprietary Limited (as trustee for the Tony Rubenstein Trust), and Alessandra Bragazzi. The regulator has now formally blocked the deal, halting a deal aimed at expanding its footprint in the retail plastics market.

Strategic setback for Transpaco
Transpaco had positioned the acquisition as a strategic move to deepen its presence in retail and wholesale plastic packaging. The blocked transaction now forces the group to reassess its inorganic growth strategy. 

Transpaco confirmed it is reviewing the Commission’s response and considering all available options, signaling a potential appeal or restructuring of the deal. The ruling reflects heightened scrutiny of consolidation in South Africa’s manufacturing sector, particularly in markets where vertical integration could alter competitive dynamics.

Expanding retail plastics footprint
Premier Plastics, founded 35 years ago, manufactures and supplies retail plastic carrier bags to fast-moving consumer goods (FMCG) retailers across South Africa, with its core market concentrated in Gauteng and surrounding inland regions.  

The company operates a manufacturing facility in Tshwane, producing retail plastic bags from both virgin and recycled materials. Its vertically integrated process spans extrusion, printing, bagging, and in-house recycling, positioning it as a fully integrated supplier in the retail plastics value chain. 

For the financial year ended June 30, 2025, Premier generated turnover of R503 million ($31.4 million), while profit after tax was R16.8 million ($1.05 million) with a net margin of 3.3%. This underscores its established presence in the domestic market. The approximately $8 million purchase price implied a multiple of approximately 7.6 times earnings. The deal also included a R29.4 million ($1.84 million) premium over net asset value.