Clothing Retailer Pepkor Explores Takeover of South African Rival Edgars

Pepkor is looking to sell more women’s clothing, cosmetics Africa’s largest clothing retailer is also expanding in Brazil

A deal could provide Pepkor with an additional 131 stores with a focus on women’s clothing and cosmetics, areas in which Pepkor is looking to expand.Photographer: Waldo Swiegers/Bloomberg

Pepkor Holdings Ltd., Africa’s largest clothing retailer, is exploring a potential takeover of South African rival Edgars, according to people familiar with the matter.

The owner of chains including Pep, Ackermans and Tekkie Town is considering paying as much as 2.4 billion rand ($126 million) for the 94-year-old brand, which three years ago was bought out of business rescue by retail holding company Retailability Pty Ltd., the people said. Talks could yet fall apart and another buyer may emerge, they said.