Finweek English Edition - - SIMON SAYS -

Brait sur­prised the mar­ket again as it con­tin­ued its spend­ing spree, this time buy­ing 90% of New Look in the UK for al­most R15bn. This is hot on the heels of the Vir­gin Ac­tive deal that in it­self was hot on the heels of the Pep­kor/ Stein­hoff deal. What the com­pany has done with th­ese three deals is move up the con­sumer chain as Pep­kor was aimed at lower in­come, while the two new deals both aim at mid­dle and up­per in­come. But what they have also done is es­sen­tially shift from a lo­cal South African com­pany to a much more in­ter­na­tional busi­ness. Sure, Vir­gin Ac­tive is mostly South Africa-based, but Stein­hoff is in­creas­ingly Euro­pean and New Look is UK based.

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