South African billionaire Christo Wiese’s Premier faces material earnings hit over RFG merger dispute

Premier Group, partly owned by South African billionaire Christo Wiese, faces a potentially material financial hit as its RFG merger dispute moves towards a tribunal hearing.

The South African food producer has warned that an adverse outcome in the regulatory dispute could require it to make a public-interest contribution large enough to materially affect its earnings. Chief executive Kobus Gertenbach disclosed the potential exposure following the release of the group's interim results on Tuesday.

The dispute centres on the Competition Commission's attempt to overturn approval of Premier's acquisition of RFG Holdings, completed in March 2026. The regulator alleges that Premier and RFG discussed the possible closure of the Tulbagh fruit-canning facility in the Western Cape before merger approval but failed to disclose those discussions during the review process.

Premier disputes the allegation, maintaining that the decision to close the facility was taken after the merger was approved, following a deterioration in global canned-fruit market conditions. Gertenbach said the company had submitted sworn affidavits from six to eight employees disputing claims that the closure had been contemplated before the transaction was completed.

The parties recently agreed to abandon an urgent court application while the substantive dispute proceeds before the Competition Tribunal. Under the agreement, Premier must preserve the Tulbagh facility in its current condition and cannot dispose of its assets while the case continues.

However, reopening the cannery appears unlikely. Premier estimates that keeping the facility closed will result in losses of between R250 million and R300 million in the 2027 financial year, compared with losses of R100 million to R150 million in 2026. The company previously reported that the closure itself would cost approximately R200 million, most of which has already been recognised in its financial results.

The financial pressure comes as Premier integrates RFG into its operations. For the six months ended September 30, 2026, the group reported revenue of R14.3 billion, representing a 38.8 percent increase, while operating profit rose 52.5 percent to R1.7 billion. The results include RFG's contribution for the first time following the acquisition.

Premier said integration synergies were progressing across procurement, distribution, merchandising, sales and systems, with further benefits expected over the next six months.

The Tulbagh closure has also affected local fruit producers. Premier reached agreements with 82 farmers, paying approximately R67 million to support the removal of peach orchards and the repurposing of agricultural land. It has also arranged alternative buyers for contracted fruit to reduce disruption during the current season.

The Competition Tribunal is expected to hear the substantive case next year, potentially from March, although a date has not been confirmed. Gertenbach said Premier remained hopeful that the dispute could be resolved amicably before reaching a full hearing.

The outcome could determine whether the company faces additional financial obligations beyond the costs already associated with the cannery's closure.