Mr Price Defends NKD EU Retail Deal Amid Investor Concerns

Mr Price Group Ltd. faced investor skepticism over the clothing chain’s purchase of the retail business of NKD Group in Europe, a deal that has wiped about a quarter off the South African retailer’s share price since it was announced.

The stock fell 4.7% as of 2:59 p.m. in Johannesburg, extending its drop since Dec. 10 — when the mid-range apparel, sports goods and homeware company said it will spend as much as €487 million ($560 million) for NKD — to 24%. It’s the worst performer on the broader retail index over that period.