Now watchdog approves takeover of Ukwala store

KENYA – The competition watchdog has given retail chain Tuskys the go-ahead to acquire and operate the Jogoo Road branch of its rival, Ukwala Supermarkets.

KENYA – The competition watchdog has given retail chain Tuskys the go-ahead to acquire and operate the Jogoo Road branch of its rival, Ukwala Supermarkets.

Through a notice in Friday’s Kenya Gazette, the Competition Authority of Kenya said the two firms could go ahead with the transaction but it excluded Ukwala’s five branches that were part of the original takeover deal.

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“In exercise of the powers conferred by section 46 (6) (a) of the Competition Act, the Competition Authority of Kenya has approved the proposed acquisition cited herein conditionally, and allowed for the acquisition of the business and assets of only the Ukwala Supermarket branch on Jogoo Road, Nairobi, by Tusker Mattresses Ltd,” the notice said.

Tuskys supermarket had earlier intended to take over six Ukwala Supermarket outlets. They included stores on Hakati Street, Ronald Ngala Street, Jogoo Road, Haile Selassie Avenue, and the two branches on Tom Mboya Street.

However, the watchdog declined to approve the take-over, saying that the companies were engaging in “horizontal restrictive trade practice.”

The two firms were fined Sh5.3 million earlier in the year for engaging in unfair trade practices.

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September 21, 2014; http://www.nation.co.ke/business/Tuskys-given-greenlight-on-Ukwala-takeover/-/996/2459102/-/2gsvkl/-/index.html

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