The two retailer chains wrote letters to the regulator asking them on the best way to move forward with their merger and whether or not it would bring any legal issues.
“We have filed pre-approval documents with CAK basically explaining to them what the intended transaction is like,” said Dan Githua, Tuskys’ chief executive.
According to CAK director-general Wang’ombe Kariuki they have received and responded to the notice issued by the retailers.
“If they want to have a management agreement, they have to seek an exemption. If they choose to merge, they have to follow the law. However, we are aware of the state the retail sector is in. We shall fast-track whichever application they submit,” Kariuki said.
In order for the merger to pull through the CAK would need to permit the two companies, however, the CAK is responsible for ensuring that companies do not take part in anything that may have a negative effect on consumers.
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