Woolworths Holdings Ltd., one of South Africa’s biggest retail groups, has received approval from the Competition Commission to move ahead with its proposed acquisition of In2food, a key supplier to its food business.

The commission has recommended that the Competition Tribunal approve the transaction, subject to two conditions designed to address concerns around competition, employment and the public interest.

If the deal is approved, Woolworths and In2food will be barred from retrenching employees as a result of the transaction during the specified moratorium period. Woolworths will also be required to continue buying from competing suppliers for a set period immediately before the deal is implemented.

Deal strengthens food supply chain

Woolworths first announced the proposed acquisition in March 2026. The transaction would bring under Woolworths’ ownership a supplier that has worked with the retailer for more than three decades. Woolworths is currently In2food’s largest customer.

The retailer said the acquisition fits with its long-standing plan to strengthen important parts of its food supply chain and give it greater control over products sold through its stores.

In2food supplies a broad range of products, including freshly prepared convenience foods, fresh produce, bakery goods, ambient products and long-life categories. The company generates about R5 billion ($313.2 million) in annual revenue and operates eight manufacturing facilities that produce about 3.2 million packs a week.

Its product range includes premium private-label goods sold across Woolworths’ food business, covering prepared meals and other convenience products, fresh produce and long-life foods, along with selected bakery and ambient products.

In2food is owned by Old Mutual Private Equity and other shareholders. The purchase price has not been disclosed.

Competition conditions attached

The Competition Commission confirmed Friday, Sept. 4, that it had recommended approval of the transaction, provided the two conditions are met.

The employment condition is intended to prevent job losses directly linked to the acquisition during the moratorium period. The procurement requirement, meanwhile, is aimed at ensuring Woolworths continues to support competing suppliers before the transaction takes effect. The recommendation now goes to the Competition Tribunal for a final decision.

Woolworths expands its food supply chain

Woolworths, founded in 1931, operates across fashion, beauty, homeware and food, with businesses in South Africa, Australia and parts of sub-Saharan Africa.

The In2food deal comes as Woolworths continues to expand its food operations. The retailer recently said it had increased its Foodstop network at Engen service stations to 101 stores, targeting consumers looking for quicker access to groceries, prepared meals and other everyday essentials.

For Woolworths, acquiring In2food would give the retailer a closer role in a supply chain that already plays an important part in its food business, while the conditions imposed by regulators are intended to preserve competition and protect employees as the transaction moves toward completion.