By Jeph Ajobaju, Chief Copy Editor
Ketron Investment, owned by a group of investors led by Persianas Investment, has acquired Shoprite Nigeria after a deal struck three weeks ago was finally approved by the Federal Consumer Competition Protection Commission (FCCPC).
The grocery seller has already sold off its interests in Kenya and wants to focus more on its home base in South Africa, having reported losses in 2019 and 2020.
Persianas, a Nigeria property development firm, is owned by Tayo Amusan who also owns Ketron which acquired 100 per cent stake in Shoprite stores from Retail Supermarkets Nigeria Limited (RSNL).
Persianas reportedly owns the major buildings that house Shoprite outlets in Lagos and Ilorin, among others.
The divestment by Shoprite International is in line with its strategy to change from an ownership model to a franchise model in the operations of one of the biggest retail success stories in Africa’s largest economy.
“We look forward to building an even stronger company following our acquisition and are excited about the greater impact we will achieve to the benefit of our customers and other stakeholders now and well into the future,” Amusan said.
Vanguard recalls that since its launch in Lagos in December 2005, Shoprite has expanded to 25 outlets across 11 states and Abuja.
Opening more stores
Ketron acquired 100 per cent ownership of Shoprite in Nigeria and will continue operations across all existing outlets, according to the terms of the acquisition
It plans to open more stores and introduce more Nigerian-made products in a bid to create more opportunities for Nigerians.
“It is our vision to create fundamental change for the better within Nigeria,” Amusan added.
“With benefits from our knowledge of the ever-evolving Nigerian retail marketplace, well-grounded social and economic research, and hands-on experience from our team, we are confident that the acquisition would foster a robust and sustainable business model for the ultimate benefit of all stakeholders.”
MBO Capital Chief Executive Officer, Jide Ogundare, said the deal signals an opportunity for Ketron to uphold a thriving business.
“It will be hard work,” he stressed, “but with the plans we have in place, and with the support of the larger Shoprite family in Nigeria, including our staff and every Nigerian shopper that walks through our doors, we are confident of success.”
Ogundare added that “Shoprite Holdings is Africa’s largest food retailer, operating 2,843 supermarkets in 15 countries and serving 35 million customers in Africa and the Indian Ocean Islands.
“At the moment, Shoprite Nigeria’s supply chain includes more than 300 leading Nigerian suppliers and boasts small businesses and farmers among its partners and suppliers.
“Ketron has said that Shoprite International will continue as technical advisers and Ketron will sustain the relationships established by Shoprite over the last decade and a half while ensuring a smooth ‘transfer of values.”’
Historical challenges
The Guardian (Nigeria) reports that, with the acquisition, Shoprite, Africa’s largest food retailer, has completed exiting the Nigerians market 16 years after it opened its first outlet.
It notes that Shoprite has struggled with supply-chain disruptions and repatriation of funds – both familiar problems to foreign businesses in the Nigerian market.
Shoprite announced in August 2020 that its business in Nigeria “may be classified as a discontinued operation” in a country where it has 25 outlets in 11 states and Abuja.
KPMG Advisory Services, MBO Capital Management Limited, and Banwo & Ighodalo advised Ketron on the acquisition.
