Lewis moves to acquire 25 Beares stores
Isaac Pinielo | Wednesday December 9, 2015 15:09
According to a press release from Lewis, the acquisition will increase the group’s total store footprint to 786 in southern Africa. Lewis Stores Botswana is a wholly owned subsidiary of the South African company, Lewis Stores (Pty) Ltd.
Competition Authority’s director of communications and advocacy, Gideon Nkala also confirmed they have received the notification and are still studying the facts before making a judgement.
“We have received that notification and still studying all the facts and the application factors. Then our review committee will have to make a determination within 30 days as we do not want to delay their business,” said Nkala.
A public announcement that was made by their lawyers, Armstrongs Attorneys stated the sale and transfer should take place after a period of 14 days following the last publication of the notice, which was on Monday.
The trading environment of the furniture market is also said to have become increasingly difficult owing to the impact of a slowing economy and reduced real disposable incomes. The transaction is subject to regulatory and competition approvals in the four countries that Ellerine trades in, including Namibia where they have 21 stores, Lesotho with 10 stores and Swaziland where there are six stores.
The 62 stores in the four countries, outside South Africa, generate approximately 20 percent of the group’s operating profit.
Lewis chief executive officer, Johan Enslin said the acquisition of the stores would enable Lewis to expand and diversify its Southern African footprint.
“We will not only gain access to new segments of the furniture retail market, but also expand our existing customer base in each of these countries,” Enslin said.