4 February 2015 by Cliffe Dekker Hofmeyr Competition Alert

Competition Commission conditionally approves Takealot's acquisition of Kalahari

The Competition Commission has conditionally approved the acquisition by Takealot Online Proprietary Limited (Takealot) of Kalahari.com, a division of MIH Internet Africa Proprietary Limited (Kalahari). As a result of this transaction Takealot will acquire the entire business of Kalahari and, in return, MIH Internet Africa Proprietary Limited will acquire a non-controlling interest in Takealot, equal to the shareholding of Takealot's existing majority shareholder, Tiger Global.

Takealot and Kalahari are South Africa's two largest online retailers of consumer goods and products and the transaction will see the consolidation of these businesses under the Takealot brand. It is envisaged that the merged entity will, due to the increased size of the combined operations, be able to compete more effectively with its competitors that operate through brick and mortar stores.

The transaction was approved subject to public interest conditions that relate to employment. In particular, the Commission imposed a condition that no more than 200 employees of the combined merged entity will be retrenched as a result of the merger and that a training fund will be established for the benefit of affected employees.

Cliffe Dekker Hofmeyr acted for Takealot in this matter.

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