The Competition and Fair Trading Commission (the Commission) has authorized the proposed acquisition of business assets of Shoprite Trading Limited by Karson Investment Trust, following a thorough assessment conducted under the Competition and Fair Trading Act (CFTA).
At its 74th meeting on 12th September 2025, the Commission evaluated the transaction’s impact on two relevant markets: the retail trading of groceries and other merchandise, and the leasing of retail property. The assessment concluded that the transaction will not substantially lessen competition in either market, nor will it result in the creation of a dominant player.
While no significant competition concerns were identified, the Commission noted potential public interest concerns in the retail trading market, including the risk of employment loss for Shoprite employees and potential impacts on the shopping experience for customers.
To address these concerns, the Commission has imposed the following conditions on the authorization:
- Karson Investment Trust shall retain all local Shoprite employees who choose to remain employed.
- For employees opting to leave, Karson Investment Trust shall ensure their terminal benefits are honored in accordance with Malawi’s employment laws.
- Any post-merger restructuring must comply with Malawi’s employment laws and be conducted in consultation with the Commission.
- Karson Investment Trust shall maintain Shoprite’s operational standards, including product diversity and shopping ambience.
- Karson Investment Trust shall submit compliance reports to the Commission every 90 days for the next two years, detailing adherence to these conditions.
It should be noted that the Commission reserves the right to reconsider its decision at any time should it become aware that any information provided by the parties was incomplete or incorrect.
For more information on this statement, contact Innocent Helema on 0880725075 or email innocent.helema@cftc.mw.
LLOYDS VINCENT NKHOMA
CHIEF EXECUTIVE OFFICER