Tuskys T-Mall Branch [Photo/Business Daily]
Tuskys Supermarkets has sent a letter the regulator asking for advise on how best to move forward with their reported merger with Nakumatt.
According to Dan Githua, Tuskys’ chief executive, both retailers wrote a letter to the Communication Authority of Kenya (CA) notifying them of their intended merger.
This comes in the wake of Nakumatt financial woes and closure of several branches across the country.
“We have filed pre-approval documents with CAK basically explaining to them what the intended transaction is like,” said Mr Githua.
CAK director-general Wang’ombe Kariuki confirmed that they had received the letter and that they had issued their response.
“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,” Mr Kariuki said.
“However, we are aware of the state the retail sector is in. We shall fast-track whichever application they submit.”
One of CAK's main mandates is that companies should not engage in practices that would end up limiting the competition, however, is has the power to grant exemptions in special cases.