UCHUMI SUPERMARKET ACQUIRES DAR'S SIFAMART SUPERMARKET

Nairobi/Dar es Salaam. Uchumi supermarket has acquired a store in Tanzania as part of its aggressive expansion plan in that market. Chief executive Jonathan Ciano said the acquisition of the outlet from Dar es Salaam-based Sifamart Supermarkets was concluded last week in a deal financed by debt.

Uchumi is yet to decide whether to take over a second branch operated by Sifamart in the same city. The acquisition is part of the supermarket’s planned expansion in Tanzania over the next eight months, when it expects to have opened a total of six stores in Dar es Salaam, Morogoro, Arusha and Mwanza.

The latest expansion increased Uchumi’s branches in Tanzania to five.

“Uchumi concluded closely guarded discussions with the management of Sifamart, allowing Uchumi to take over the operations … effective November 1, 2014,” Mr Ciano said.

“The acquisition was supported by our financiers who have leased the supermarket equipment to Uchumi and our esteemed suppliers who have enabled the working capital to the tune of TSh1.02 billion (Sh53 million),” Mr Ciano said.

He declined to reveal the acquisition cost and whether the transaction included the premises and inventory. Uchumi is reviewing its staffing needs and the qualifications of workers inherited from Sifamart to inform how many will be absorbed.

The Fair Competition Commission (FCC) had no information about the takeover until yesterday. “My bosses have not informed me about the acquisition so I have nothing to say,” FCC senior communications and public relations officer Frank Mdimi told The Citizen on phone yesterday.

The Citizen