Kalahari.com and Takealot have released a statement that reveals that both parties will be merging their operations. According to both parties, the move has been made in order to compete against the likes of online portals such as Amazon and Alibaba.
The value of the merger has not yet been revealed by both parties; however, the merger will only come into effect once approved by the Competition Authority.
Oliver Rippel, senior executive responsible for Kalahari, stated that: “After many years of losses on Kalahari and 4 years on Takealot, we realise we have to work together if we are to survive and prosper.”
Rippel added that: “If you also take into account an uneven playing field against foreign operators who do not pay tax in South Africa, and the fact that high broadband costs are impeding the speed of growth in local online shoppers, combining forces gives us a better chance of success.”
Both parties have stated that the merger will benefit customers as both online retailers will now provide a wider range of products as well as offer a broader selection of delivery services. Both parties also revealed that the merger will not disrupt consumer shopping over the festive season.
Takealot CEO, Kim Reid, added: “We are enthused about this transaction and the efficiencies and scale that it can generate for the merged business. We will continue to make sure that our primary focus is on the customers of the merged entity as they are the life blood of our business.”