Tuskys Supermarket has confirmed that it is planning to takeover troubled retailer Nakumatt. Subequently, Tuskys has written has written to the competition watchdog.
Nakumatt is currently facing imminent collapse following a ballooning debt that runs into billions of money.
Dan Githua, Tuskys’ chief executive, Thursday said the retailers jointly wrote a formal notice to the Competition Authority of Kenya (CAK) alerting them of their intended merger while seeking the regulator’s opinion on how to proceed.
A merger of the firms will result in the largest retailer in the country, with rivals such as Naivas Supermarket and Uchumi Supermarkets far behind.
“If they want to have a management agreement, they have to seek an exemption. If they choose to merge, they have to follow the law,” CAK director-general Wang’ombe Kariuki told a local daily.