According to reports, Kenya’s largest retail chain, Nakumatt, are to acquire three stores belonging to South Africa’s Shoprite in Tanzania however Shah told CNBC Africa online that no details of the deal have been finalised and only one discussion has taken place between Nakumatt and Shoprite so far.
“We have had one discussion with Shoprite and nothing has been finalised as yet. The value of the deal has not been discussed and a press release will be out as soon as more information is available,” said Shah.
Shoprite has stores located in Mlimani mall and Puga road, both in Dar E Salaam as well as Arusha in Arusha.
Reports suggest that the three stores being sold to Nakumatt are allegedly worth 4 billion Kenyan shillings and the deal is set to reach completion by March 2014.
Shah added that Nakumatt would be pleased to expand their presence in Tanzania as part of the company’s cross border expansion strategy.
The company recently opened its 43rd and 44th branches located at the new Lavington Curve Mall in Nairobi and the Victoria Mall in Uganda respectively.
Shoprite, on the other hand, opened its first shop in Tanzania in 2001.
Shoprite’s spokesperson, Sarita van Wyk, told CNBC Africa online that the company is involved in discussions regarding their Tanzanian businesses but is not in a position to provide comments at this stage.
“Shoprite is currently involved in discussions around its business in Tanzania but is not in a position to provide comment at this stage. As part of its larger Africa expansion strategy, discussions about its various operations outside of South Africa do take place from time to time and is not out of the ordinary,” said van Wyk.