The Namibia Competition Commission (NaCC) is expected to make a decision in May on whether to approve Pepkor’s proposed acquisition of Shoprite Holdings’ furniture and credit business.
The transaction would see a merger between Pep Stores, Big Daddy and JD Financial with Shoprite’s OK Furniture outlets in Namibia. The Commission is currently reviewing submissions related to the deal, with particular focus on its impact on market share, employment, and competition within the country.
“We will present the report to the board of commissioners. The board will give either an approval or decline. If they do approve, they will do so with or without conditions, and the reasons thereof will be indicated,” said NaCC Chief Executive Officer, Vitalis Ndalikokule.
Should conditions be imposed, these would aim to address any competition or public interest concerns identified during the review process. Competition-related concerns may include anti-competitive conduct such as price fixing, market allocation, or abuse of dominance, while public interest concerns could relate to potential job losses, impacts on SMEs, or effects on specific sectors or regions.
Pepkor Lifestyle, the acquiring entity, plans to purchase 18 OK Furniture outlets and three House & Home stores from Shoprite. Pepkor already operates 16 stores across Namibia under its home and tech category, including Sleepmasters, HiFi Corp and Incredible Connection. If approved, the deal would result in a combined network of 37 furniture outlets nationwide.
NaCC Director of Mergers and Acquisitions, Ashipala Johannes, said the commission is assessing whether the merger could lead to job losses, particularly at regional management level.
“There is concern that regional managerial roles may become redundant,” said Johannes. “NaCC will also look at whether competitors will be directly barred from entering the market. Big Daddy is a direct competitor, and thus a merger could amount to the elimination of direct competition and a consolidation of market power.”
Senior Counsel for the merging parties, Jerome Wilson, said Pepkor initiated the merger process as it believes the transaction is pro-competitive.
“It will enable the target stores, which are currently family-owned, to benefit from system efficiencies, know-how, and other synergies that Pepkor brings to the table,” he said.
Wilson further emphasised that the merger would not negatively affect consumers or suppliers.
“Post-merger, the stores will continue to operate on a standalone basis and therefore will not lead to any merger-related retrenchments. The transaction will prioritise the retention of jobs. The merger is pro-competitive with positive investments into the Namibian economy,” he said.
The final decision now rests with the NaCC’s board of commissioners, whose ruling will determine whether the deal moves forward, and under what conditions, if any.
