The previously announced merger between South African e-commerce ventures Kalahari and Takealot has been approved by the Competition Commission of South Africa. The approval was made known by the commission on Monday.
The merger is believed to have been necessitated by a need to scale against growing competition from traditional retail outlets and other major e-commerce ventures.
Under the terms of the merger, Kalahari’s employees would be integrated into the new system as the agreement only permits a minimal layoff of Kalahari employees. Kalahari would be absorbed into Takealot by the 1st of february.
According to Kim Reid, Takealot CEO, “We are excited about the approval of the transaction. This will allow us to build a significant retail entity in South Africa, one that continues to be truly customer focused.”
Takealot recently received $100 million from Tiger Global Management for a 41% stake. It is also believed that Naspers, owners of Kalahari, will hold an equal amount of shares.
