Transpaco annual report records regulator's block of USD 7.7m Premier Plastics deal
South African packaging group Transpaco says in its annual report that the Competition Commission prohibited its proposed purchase of retail plastic bag maker Premier Plastics for about USD 7.7m (ZAR 128m) during its financial year to end-June. Revenue for the year rose 0.7% to USD 0.14bn (ZAR 2.4bn) and operating profit rose 3.1% to USD 12.9m (ZAR 214.1m). Chair Derek Thomas said leakage in the plastic bag levy system disadvantages producers that comply.
Why this mattersThe prohibition limits consolidation by South Africa's largest retail plastic bag maker, while levy leakage leaves compliant converters competing against non-compliant ones.
- Competition Commission prohibited Transpaco's proposed purchase of Premier Plastics for about USD 7.7m (ZAR 128m)
- Premier Plastics is a retail plastic bag manufacturer
- Revenue for the year to end-June rose 0.7% to USD 0.14bn (ZAR 2.4bn)
- Operating profit rose 3.1% to USD 12.9m (ZAR 214.1m); headline earnings rose 4.3% to USD 9.2m (ZAR 153.5m)
- South African retail plastic bags must contain 75% post-consumer recycled material, rising to 100% next year
- Chair Derek Thomas said leakage in the plastic bag levy system disadvantages compliant producers
Sources
businessday.co.za