The Competition Authority of Kenya has given a green light for Naivas International to sell 30% of its stake to French Private Equity firm, Amethis.
Therefore, Amethis will control all of Naivas’ Kenyan subsidiary, which is a supermarket chain.
However, the authority spells out the following conditions in line with the acquisition:
- The merged entity to honor all the current contracts with suppliers
- All the reconciled and outstanding debts owed to suppliers be paid
- The merged entity to review its existing and future contracts with suppliers
In January this year, the retail chain revealed plans to sell the 30% stake to Amethis, although the two companies did not reveal how much the PE firm will inject into the retail chain. The capital injection seeks to boost the retail chain’s survival in the otherwise highly competitive market.
Apart from Kenya, Amethis is already operational in Madagascar, Mauritius, and Tunisia.
Naivas is a leading supermarket chain in Kenya with 58 stores spread across the country