Nakumatt and Tuskys Supermarkets have made a new announcement over reports of a proposed merger deal that was signed between them.
In a statement issued on Tuesday, the two top retailers stated that a formal agreement on the deal was yet to be reached.
They noted that representatives from Tuskys and Nakumatt as well as their advisors were in the process of holding discussions to explore potential business integration between the two family-owned retailers.
“These confidential discussions are continuing and although the engagement has been positive and good progress has been made, it is important to note that a formal agreement is yet to be reached and will be subject to notification and approval by regulators and lenders
“Any transaction of this nature is complex, involves consideration of a broad range of issues and interests of key stakeholders including employees, suppliers, landlords and lenders whose interests are paramount and are being carefully considered,” the statement read.
On Monday, reports emerged that Nakumatt had signed a deal with Tuskys in a move aimed at preventing a total collapse of the cash-strapped company.
Sources close to the deal stated that the merger would see Nakumatt access stock from suppliers using Tuskys supermarkets' goodwill and value chain.
They further disclosed that the two will be maintained as separate entities, but Tuskys will take over the management of Nakumatt.
Earlier on, the Competition Authority of Kenya (CAK) stated that it was not aware of the merger deal between the two supermarkets.