Woolworths gets the green light to buy one of its major suppliers

Woolworths has received the green light from South Africa’s Competition Commission to acquire In2food, one of the retailer’s key suppliers.

The commission recommended that the Competition Tribunal approve the proposed transaction, but attached two key conditions.

Should the deal go through, the two companies may not retrench any employees as a result of the merger for the duration of the moratorium period. 

In addition, Woolworths must continue to procure from competing suppliers for a set period of time immediately preceding the implementation date.

This deal was first announced in March 2026 and will see Woolworths acquire one of its key suppliers for over 30 years. The retailer is currently In2food’s largest customer.

Woolworths said the acquisition represents a continuation of its Food business’s long-standing strategy to strengthen key elements of its differentiated food value chain.

In2food generates R5 billion in revenue per year through its eight manufacturing facilities, which produce 3.2 million packs weekly.

The supplier produces a range of premium private-label products across the freshly prepared convenience food, fresh produce, and long-life categories, as well as some ambient and bakery products.

In2food is currently owned by Old Mutual Private Equity and other shareholders. The acquisition cost has not been made public.

On Friday, 4 September, the Competition Commission confirmed that it has recommended that the Tribunal approve the deal, with the two conditions attached.

The conditions are aimed at addressing competition, employment, and public interest concerns.