Rhodes Food stock faces merger challenge over cannery closure

Five Western Cape fruit growers are taking legal action over Premier's planned closure of its Tulbagh cannery, adding pressure to the regulatory dispute surrounding the acquisition of Rhodes Food Group. FreshPlaza reported on October 29, 2026, that the growers had filed an urgent High Court application.

The growers supply peaches and apricots from Robertson and Montagu. They want Premier to receive, grade and pay for contracted fruit during the 2026/27 harvest, which begins in November. They argue that their agreements require termination notice covering at least two further harvest seasons.

Merger approval faces renewed challenge

The Competition Commission has asked the Competition Tribunal to reverse approval of Premier's ZAR 6.5 billion acquisition of Rhodes Food Group. The commission alleges that possible plans to close the cannery were not disclosed during the merger review.

Premier denies withholding information. The company maintains that the closure decision followed the acquisition and cites market conditions, rising costs and declining factory utilisation. The commission estimates that about 200 fruit growers depend on the cannery, while more than 400 employees and thousands of seasonal workers could be affected.

Premier has offered Western Cape peach growers ZAR 3,250 per tonne to settle their supply agreements. The growers' court application is scheduled for November 9, creating the next clear legal milestone for the transaction.

What investors should watch

The dispute puts the focus on the durability of the merger approval and on the operational consequences of the Tulbagh closure. A reversal of approval or changes to merger conditions could alter the integration path for the combined food business, while the court case will test Premier's obligations to suppliers.

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