Africa’s largest retailer is quitting Nigeria announced a new timeframe for the end of its operation in Nigeria.
South Africa-owned Shoprite’s plans on shutting down its business in Nigeria by selling all its stake in Retail Supermarkets Nigeria Limited or majority of it.
According Legit report, the commerce company said it is awaiting approval from Nigerian Federal Competition and Consumer Protection Commission as the management has submitted the terms of transaction, as it has concluded the sale to an investor.
It is not a new news as the company, last year said that it will exit the Nigerian market by late 2020, said it has been approached by potential investors willing to take over its Nigerian operations. It said it is considering an outright sale or parting with a majority stake in its Nigerian subsidiary.
“As such, Retail Supermarkets Nigeria Limited may be classified as a discontinued operation,” ShopRite said in a statement.
Revealing the progress of the acquisition of Retail Supermarkets Nigeria by a new investor, in its company’s financials for the sixth months ended December 31, 2020, Shoprite said:
“Management expects the transaction to be approved by the end of 2021.”
In another statement for the 26 weeks to December 31, 2020, the supermarket chain said it is:
“at the approval stage in terms of the sale of our Nigeria supermarket operation. From here, our capital allocated to the region remains at a minimum and we continue to manage costs as best as we can,”Shoprite disclosed.
It is not sure if Shoprite has sold all its stake in Retail Supermarkets Nigeria or just a part, but what is certain is that the company is reducing its presence in Africa’s largest economy.
This is in order to cut costs and focus investment in South African operations. Other stores in Kenya have also been closed down according to its statement in the firm’s financials.
Input from Legit.ng