* For employees opting to leave, Karson Investment Trust shall ensure their terminal benefits are honored in accordance with Malawi’s employment laws
* Any post-merger restructuring must comply with Malawi’s employment laws and be conducted in consultation with the Commission.
* Karson Investment Trust shall maintain Shoprite’s operational standards, including product diversity and shopping ambience
By Duncan Mlanjira
The Competition & Fair Trading Commission (CFTC) has authorised the proposed acquisition of business assets of Shoprite Trading Limited by Karson Investment Trust with conditions which were agreeable by the parties to the transaction — which include that Karson must retain all local Shoprite employees who choose to remain employed.
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The decision was arrived at CFTC’s 74th meeting on September 12, where the Commission evaluated the transaction’s impact on two relevant markets — the retail trading of groceries and other merchandise, and the leasing of retail property.
“The assessment concluded that the transaction will not substantially lessen competition in either market, nor will it result in the creation of a dominant player,” says a statement from CFTC Chief Executive Officer Lloyds Vincent Nkhoma.
“While no significant competition concerns were identified, the Commission noted potential public interest concerns in the retail trading of groceries and other merchandise market, including the risk of employment loss for Shoprite employees and potential impacts on the shopping experience for customers,” said Nkhoma.
Vincent Lloyds Nkhoma
Thus following a thorough assessment conducted under the Competition and Fair Trading Act (CFTA), the Commission authorised the acquisition and to address the concerns job loss, the employees must be retained — and that employees opting to leave, Karson Investment Trust should ensure their terminal benefits are honored in accordance with Malawi’s employment laws.
The conditions also include that any post-merger restructuring must comply with Malawi’s employment laws and be conducted in consultation with the CFTC; that Karson Investment Trust shall maintain Shoprite’s operational standards, including product diversity and shopping ambience; and Karson Investment Trust shall submit compliance reports to the CFTC every 90 days for the next two years — detailing adherence to these conditions.
“It should be noted that the Commission reserves the right to reconsider its decision at any time should it become aware that any information provided by the parties was incomplete or incorrect,” says Nkhoma in his statement.
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