Mr Price shares tumble after announcement of European acquisition deal.

South African fashion retailer Mr Price has announced its first entry into the European market with the acquisition of NKD Group, a German-based discount retailer. The deal, valued at up to 487 million euros ($567.55 million), was revealed on Wednesday. Following the announcement, Mr Price shares experienced a significant decline, dropping 13.35% by 1030 GMT.

Mr Price described NKD as a strategic fit, highlighting its focus on value retail. NKD operates 2,108 stores across seven Central and Eastern European countries, offering apparel and homeware. According to market data cited by Mr Price, the value retail market is growing faster than the overall retail market and already accounts for approximately 22% of the European market. Mr Price CEO Mark Blair commented on the decision, stating, "After meeting the NKD team, it was evident that this was the right business to pursue." He added, "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."

The acquisition, which involves funds currently managed by TDR Capital LLP, includes the purchase of all NKD shares and income from shareholder loans. Mr Price stated that the transaction will be funded using a combination of its existing cash reserves and new debt facilities. The deal is contingent upon obtaining regulatory clearances from both the European Commission and the South African Reserve Bank.

The transaction is anticipated to close by the second quarter of 2026. Once finalized, the acquisition will substantially expand Mr Price's footprint and financial scale. The company projects its annual revenue will increase from 40.9 billion rand to approximately 53 billion rand ($3.12 billion). The total store count will exceed 5,000, up from roughly 3,100, and the employee base will expand to more than 40,000.