TFG acquires Australian menswear group RAG
Holding company of fashion chain Foschini is acquiring Retail Apparel Group for up to R3bn
TFG is the latest retailer to enter the Australian market, announcing on Thursday that it would acquire menswear group, Retail Apparel Group (RAG), for up to R3bn. CEO Doug Murray said the move was a strategic decision aimed at diversifying income streams, but analysts expressed concerns about the entry into the Australian market, saying South African retailers had struggled in that country. TFG’s share price dropped 5.79% to close at R132.34. Murray said that diversifying the business through the acquisition of a well-run and well-managed company such as RAG made good business sense. "Australian retailers have easily come to our backyard and we have always thought that we could trade there. "We know Australian retail is very tough, but it is also tough here at home, one just has to look at the figures coming out of retailers. "But RAG is an outstanding business, with a great trade record. The business is of size, but not so big that it will cause risk to the mother ship," Murray sa...
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