THE Competition Commission has officially prohibited the proposed R128 million acquisition of Premier Plastics by JSE-listed packaging giant Transpaco, citing concerns over market concentration and reduced competition in the retail sector.

The deal, first announced in late 2025, was intended to bolster Transpaco’s presence in the fast-moving consumer goods (FMCG) market, particularly within Gauteng. Premier Plastics, a 35-year-old manufacturer based in Tshwane, is a key supplier of retail plastic carrier bags. Transpaco had initially viewed the acquisition as a “closely aligned” strategic fit that would enhance its service capabilities through Premier’s experienced management and established manufacturing facilities.

However, the Competition Commission ruled in late February that the merger would likely result in a substantial lessening of competition. Regulators expressed concern that absorbing a significant independent player like Premier Plastics would grant Transpaco a dominant position, potentially leading to higher prices for smaller retailers and, ultimately, consumers.

In a statement to shareholders via SENS, Transpaco confirmed it had been notified of the decision and is currently “working through the Commission’s response and considering all available options,” including a potential appeal to the Competition Tribunal.