Kenyans shop at Nakumatt Supermarket at Garden City Mall on Thika Superhighway, Nairobi. The planned entry of Tuskys, if approved, may give Nakumatt a lifeline. [PHOTO/nation.co.ke]
The planned merger between Nakumatt Holdings and Tusky Supermarkets has remained pending awaiting approval by the the Competition Authority of Kenya (CAK).
According to Nation, talks for the merger between the two chief retailers are at an advanced stage after they signed a memorandum of understanding.
The signing is yet to be approved by CAK to finalise their business arrangement.
If approved, the entry of Tuskys is set to give Nakumatt a lifeline and rescue it from the current woes.
“Once the regulator reviews the agreement, then the investor will take over the management of the company and may reduce costs by closing down branches,” read in part the documents filed in court.
Currently, there is an order that stops all Nakumatt creditors from attaching any of its property to recover dues.
The hearing will resume on Monday.