The Competition Authority of Kenya (CAK) has stated that it is not aware of the merger deal between Nakumatt and Tuskys Supermarkets.
CAK stated that the two top retailers had not sought the competition watchdog’s approval as required by law.
“We have not received an application for such a merger,” CAK Director-General Wang’ombe Kariuki stated.
Trade Principal Secretary (PS) Chris Kiptoo while welcoming the deal, stated that the competition watchdog must determine the extent to which the proposed merger will create an unhealthy dominance in the retail market.
Under Kenyan law, CAK must approve any undertaking with a minimum combined turnover or assets of Sh1 Billion and Sh100 Million in the target undertaking.
On Monday, Nakumatt and Tuskys signed a merger deal in a move to prevent a total collapse of cash-strapped Nakumatt.
The merger will see Nakumatt access stock from suppliers using Tuskys supermarkets' goodwill and value chain.
The two will be maintained as separate entities, but Tuskys will take over the management of Nakumatt.
Nakumatt has been facing hard financial times in the past few months after accumulating a huge debt of Sh30 Billion.
Read More: Nakumatt Signs Merger Deal With Tuskys Supermarkets
