South Africa-based retailer Shoprite has entered an agreement to acquire the franchise division of local rival Metcash Trading.
Metcash Trading yesterday (8 March) announced its the business will be sold to Shoprite Checkers and will include franchise agreements under banners including Friendly, Seven Eleven and Price Club Discount Supermarket.
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The formats include convenience stores, supermarkets, discount stores and are situated across South Africa.
“This conforms to our group’s strategy to rationalise our business and focus on our core business, said Metcash CEO Peter Dodson. “The transaction will also provide the group with additional resources to convert our existing Metro stores to the new and exciting hybrid stores, as well as to expand the hybrid concept to other areas in South Africa.”
Commenting on the acquisition, which will be integrated into Shoprite’s OK Franchise Division (OKFD), Shoprite deputy managing director Carel Goosen said: “The transaction will provide OKFD with a further platform to grow its business and franchisees exponentially, both in numbers and in turnover.”
The sale is remains subject to anti-trust approval and terms of the deal were not disclosed.
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By GlobalData
