April 22, 2014

Nakumatt Protest Shoprite Takeover Delay

A Nakumatt outlet. The chain is acquiring Shoprite stores in Tanzania. Photo/Net
A Nakumatt outlet. The chain is acquiring Shoprite stores in Tanzania. Photo/Net
Nakumatt, East Africa’s largest retailer, has protested a court order barring its takeover of Shoprite withdrawn this week, a top official said to sources.

Kenyan owned Nakumatt’s bid to acquire three branches of South African-owned Shoprite supermarkets suffered a setback after the Tanzania Union of Industrial and Commercial Workers (Tuico) last month obtained an injunction suspending the takeover.

The court process resulted from Shoprite’s failure to pay terminal benefits to its employees.

Shoprite opened its first shop in Tanzania in 2001 and its exit came after the Tanzanian government cautioned it against importing most of its consumer products from South Africa. Both retailers have a big presence in Uganda.

It is estimated that the deal, which will see the Kenyan retailer acquire two Dar es Salaam- based Shoprite stores and one outlet in Arusha, will cost Nakumatt Ugs 120 billion.

Nakumatt was expected to take over the stores by April 1.

Enable Notifications    Ok No thanks