JOHANNESBURG: South Africa’s competition body gave online retailer Takealot a conditional nod to acquire Kalahari.com, one of Naspers’ e-commerce firms, which would help form a formidable e-tailer to take on brick and mortar stores.
Takealot raised $100 million for expansion in both South Africa where it estimated online transactions make up only about 1 percent of the 500 billion rand ($42.5 billion) retail market and elsewhere on the continent.
The deal proposes that Takealot’s US based parent, Tiger Global, gives up some shareholding to Naspers after combining operations of the their two respective e-commerce companies.
The Competition Commission asked that no more than 200 employees are laid off as a result of the merger. In a separate deal, the competition authority blocked Life Healthcare’s proposed acquisition of the independent Lowveld Hospital.
Further the body also declined to give Hosken Consolidated the go ahead to acquire Atterbell Investment, which operates the Gallagher Convention Centre.
Life’s shares were up 0.8 per cent and those of Hosken had lost 0.3 per cent.
