Kalahari, Takealot merger gains approval

Mergers, Acquisitions and Financial Results

The Competition Commission has approved the merger of Kalahari and Takealot, two of South Africa's leading online retailers. In October, the two companies announced their intention to merge, subject to regulatory approval, to enable them to offer a wider product selection and improved delivery services, IT-Online reported.

The decision was based on the fact that local e-tailers simply do not have the scale to compete with the likes of Amazon and Alibaba. Oliver Rippel, senior executive responsible for Kalahari, said in October that companies must work together to prosper, or face closure. Online retail only accounts for approximately 1.3 percent of the total market for consumer goods in South Africa.

Source: Telecompaper 6 January 2015