One of the major barriers in the way of the proposed merger of the two largest online retailers in South Africa has been cleared as the Competition Commision has given the green light for the Kalahari.com/Takealot union that was first proposed in October last year.
“It’s an approval subject to conditions to address employment concerns,” Hardin Ratshisusu, the acting deputy commissioner for the Competition Commission told Fin24. “Potential job losses should not exceed 200”.
The two retailers have been fighting each other for market share over the last few years which has caused both of them to sink millions of rands worth of potential profits into marketing campaigns that have inflicted losses on their respective holding companies.
Naspers, who owns Kalahari.com, and Tiger Global, who invested over R1 billion in Takealot last year, will each hold a 41% stake in the proposed new company which will continue to trade under Takealot’s name should the deal go through.
With the first of the major regulatory hurdles out of the way the fate of the merger will more than likely be known before the end of the year and as long as the two companies can keep the job losses to a minimum it seems as though South Africa may have its own shopzilla before 2015 is over.
[Source – Fin24]