Transpaco deal for Premier Plastics blocked

Transpaco’s plan to acquire 35 year old Premier Plastics Proprietary Limited has been prohibited by South Africa’s Competition Commission, dealing a setback to the JSE listed packaging group’s expansion strategy.

The company confirmed that it has been informed by the commission that the proposed transaction cannot proceed. Transpaco said it is reviewing the regulator’s response and weighing its available options.

The deal, first announced last year, would have seen Transpaco acquire Premier Plastics from Bundeena No 2 Proprietary Limited as trustee for the J Rubenstein Superannuation Fund, Sixone Proprietary Limited as trustee for the Tony Rubenstein Trust and Alessandra Bragazzi.

Premier Plastics was founded in 1991 and manufactures retail plastic carrier bags supplied to fast moving consumer goods retailers across South Africa. Its core market is Gauteng and surrounding inland regions.

The company operates a manufacturing facility in Tshwane where it produces plastic bags using both virgin and recycled raw materials. Its production process includes extrusion, printing, bagging and in house recycling.

Transpaco had positioned the acquisition as an opportunity to expand its footprint in the retail and wholesale segments. The group previously stated that Premier’s business model aligned closely with its own operations and that the transaction would enhance its ability to serve customers more effectively.

Management depth was also cited as a key attraction. Premier’s senior leadership team has an average of 30 years of experience in running the business, according to Transpaco’s earlier statements. The group also pointed to growth prospects within local and export markets.

The purchase consideration for Premier Plastics was set at R128 million, subject to certain adjustments, plus interest calculated from the effective date to the closing date at prime overdraft rates. The offer included a premium of R29.4 million above the book value of the net assets to be acquired.

Financially, Premier reported turnover of R503 million for the year ended 30 June 2025 and generated net profit after tax of R16.8 million.

The Competition Commission did not immediately detail the reasons behind its prohibition in the company’s statement.