PICK N PAY ACQUISITION DEAL APPROVED WITH STRINGS ATTACHED

Article By: Gilbert Manenye

South African based retail group Pick n Pay has received approval from the Competition and Consumer Authority (CCA) to proceed with its proposed acquisition of 100% ownership in NTS Holdings, a retail franchisor that has been operating 19 Pick n Pay branded retail and liquor stores in Botswana since 2009.

According to the CCA notice, the transaction is not likely to reduce competition in Botswana's retail market nor disrupt the continuity of service in the market.

However the competition regulatory authority attached a warning to pick n Pay, saying the company should refrain from making any merger specific dismissal of employees in Botswana for three years on top of an order that all current NTS staff be retained under equal or improved contractual terms.