The Competition Commission recommended approving the planned acquisition of the food producer in2food by Woolworths. As part of this deal, Woolworths plans to acquire a hundred percent stake in in2food, thereby integrating one of its long-standing suppliers into the retail group after more than thirty years of cooperation.
Woolworths stated that this takeover will help strengthen supply chain resilience, increase time-to-market speed, and ensure greater flexibility and efficiency over time. The purchase price was not disclosed.
Major Food Producer
In2food generates annual revenue exceeding 5 billion rands and produces over 3.2 million packages weekly across eight production sites. The company's operations cover fresh ready meals, fresh produce, long-life and ambient goods, as well as bakery items. In2food supplies products under its own brand to major retail chains, with Woolworths being its largest client.
The Commission noted that to address competition issues, the acquiring firm must continue to purchase products from competing suppliers for a specified period after the merger is implemented. Furthermore, to resolve employment concerns, the parties to the deal commit not to lay off any employees during the moratorium period. Also, to consider public interest, the acquiring company must continue purchasing from competitors in the period immediately preceding the effective date.
Woolworths Group CEO, Roy Bagatini, previously emphasized that this acquisition represents a significant opportunity to bring key strategic competence closer to the Foods business, which will strengthen one of the main differentiators in its food product range. Bagatini added that 'Woolworths and in2food have a long history of close collaboration focused on providing high-quality, innovative food products that align with the premium positioning of Woolworths Foods.'