Finance
South Africa's Mr Price makes European debut through German value retailer deal
Published by Global Banking and Finance Review
Posted on December 10, 2025
Last updated: January 7, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on December 10, 2025
Last updated: January 7, 2026
JOHANNESBURG, Dec 10 (Reuters) - South African fashion retailer Mr Price will acquire NKD Group, a German-based discount retailer for up to 487 million euros ($567.55 million), it said on Wednesday, marking its first entry to the European market.
By 1030 GMT, Mr Price shares were down 13.35%.
Mr Price said that NKD, an apparel and homeware retailer with 2,108 stores in seven Central and Eastern European countries, is a strategic fit.
Market data indicates that the growth in the value retail market is outpacing that of the overall retail market. In Europe, value retailing accounts for about 22% of the market.
"After meeting the NKD team, it was evident that this was the right business to pursue," said the group's Chief Executive Officer Mark Blair.
"Like us, they are value-retailers at heart and have a very clear understanding of who their customer is and how to best serve them," he added.
The acquisition of NKD, which is from funds managed by TDR Capital LLP, includes the purchase of all NKD shares and income from shareholder loans. The deal will be settled using a mix of existing cash reserves and debt facilities, Mr Price said in a statement.
The transaction is subject to regulatory approvals, including clearance from the European Commission and the South African Reserve Bank.
It is expected to close by the second quarter of 2026, Wednesday's statement said.
Once completed, Mr Price's annual revenue would increase to approximately 53 billion rand ($3.12 billion) from 40.9 billion rand, while the number of its stores would reach more than 5,000, up from around 3,100, and it would have more than 40,000 employees.
($1 = 0.8581 euros)
($1 = 17.0122 rand)
(Reporting by Siyanda Mthethwa;Editing by Sfundo Parakozov and Barbara Lewis)
An acquisition is a corporate action in which one company purchases most or all of another company's shares to gain control of that company.
A strategic fit refers to the alignment of a company's goals and operations with another company, enhancing overall business performance and market position.
Market impact refers to the effect that a particular event or transaction has on the price and trading volume of a company's stock or the overall market.
Annual revenue is the total income generated by a company from its business activities over a year, before any expenses are deducted.
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