Courting retail chains Tuskys and Nakumatt have spoken out about talks between their managements geared at a possible merger. The supermarket giants, through their PR agency, confirmed rumours that started yesterday that the managements were in discussion for a deal to save Nakumatt, which is facing financial problems.
“We confirm that there have been confidential discussions between the authorized representatives of Tuskys and Nakumatt and their advisors aimed at exploring potential options for synergies, co-operation and business integration between the two family owned retailers, including by way of strengthening and streamlining management, acquisition of assets and eventual merger of the entities,” said an unsigned statement from Oxygene Public Relations.
According to the statement’s wording, a partial merger is the most likely result, where Tuskys could end up acquiring equity in Nakumatt and taking leading management role. This will usher in a new chapter in Kenya’s retail industry, where rivals with a common heritage rejoin decades later.
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Here is the full statement
Tuskys and Nakumatt clarify position in respect of reports of a business merger
In response to media reports about a proposed merger of the businesses of Tusker Mattresses Limited (“Tuskys”) and Nakumatt Holdings Limited (“Nakumatt”), we would like to take this opportunity to issue a joint formal statement to clarify the position in the interests of transparency.
We confirm that there have been confidential discussions between the authorized representatives of Tuskys and Nakumatt and their advisors aimed at exploring potential options for synergies, co-operation and business integration between the two family owned retailers, including by way of strengthening and streamlining management, acquisition of assets and eventual merger of the entities.
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These confidential discussions are continuing and although the engagement has been positive and good progress has been made, it is important that we acknowledge 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 and magnitude 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 founders of Tuskys and Nakumatt have enjoyed a close business and family relationship spanning more than four decades and share a common heritage as pioneer Kenyan retailers from Nakuru County and are excited by the opportunity for the business integration.
In the interim, we would like to thank our customers, suppliers and other stakeholders for their continued support.
