Karson Investment Trust cleared to acquire Shoprite assets with employment safeguards

The Competition and Fair Trading Commission (CFTC) has authorized the proposed acquisition of Shoprite Trading Limited’s business assets by Karson Investment Trust, with safeguards in place to protect employees and ensure a seamless shopping experience for customers.

At its 74th meeting on 12th September 2025, the Commission assessed the transaction’s impact on two key markets: the retail trading of groceries and other merchandise, and the leasing of retail property. The review concluded that the acquisition will not substantially lessen competition in either market, nor will it create a dominant player.

In a statement, Lloyd Vincent Nkhoma, Chief Executive Officer of the Commission, said while no significant competition concerns were identified, the Commission noted potential public interest issues, including possible job losses and impacts on customers.

To address these concerns, the acquisition will proceed under conditions agreed by both parties. Karson Investment Trust is required to retain all Shoprite employees who choose to remain and honor terminal benefits for those leaving, in line with Malawi’s employment laws.

“That Karson Investment Trust shall retain all local Shoprite employees who choose to remain employed,” read the statement. “That Karson Investment Trust shall maintain Shoprite’s operational standards, including product diversity and shopping ambience.”

The statement further says any post-merger restructuring must comply with employment regulations and be conducted in consultation with the Commission.

Additionally, Karson Investment Trust has been tasked to submit compliance reports to the Commission every 90 days for the next two years, ensuring adherence to these conditions, and the Commission says it reserves the right to reconsider its decision should any information provided prove incomplete or incorrect.