Rivals Quickmart, Tumaini Supermarkets set to merge

Retail rivals Quickmart and Tumaini have commenced merger deliberations which will effectively lead to joint operations by the close of 2020.

The unprecedented move by the respective supermarkets was triggered by the capture of a controlling stake in Quickmart by Sokoni Retail Kenya Limited which is incidentally the majority shareholder in Tumaini.

The deal, which is forged under a special purpose vehicle controlled by Private Equity Adenia Patners, has since received the seal of approval from the Competition Authority of Kenya (CAK).

“The boards intend that the combined entity will rank as  Kenya’s 3^rd largest retailer by store network and will enhance the capacity to accelerate expansion while strengthening operational efficiencies,” the supermarkets respective Managing Director’s said in a joint statement on Thursday.

The pair further expects the merger to expound on the opportunities for employee advancement and growth.

Moreover, the retailers expect the intended combined entity to be better placed in adapting to the changing consumer tastes and preferences.

The legal merger by shareholding will become effective at the close of 2019 when a new Group Managing Director Peter Kang’iri takes over ranks to head the implementation of business strategy.

The pairing of Quickmart and Tumaini have unofficially claimed the tag ‘neighborhood supermarket’ coined from their presence in semi-urban dwellings and satellite towns away from the Central Business District.

Quickmart and Tumaini have set their sights on expanding their store network to 30 from the current 24 by the end of the calendar year.