Media24 and Takealot will merge their online fashion stores Spree and Superbalist to create a new platform for the sale of fashion goods on the Internet.
The new venture will be held 51% by Media24, Spree’s current shareholder, while Takealot will own 49% of the venture. Takealot will be responsible for the day-to-day operations and management of the business.
The merger is effective on 1 July and is not subject to Competition Commission approval, the companies said in a statement on Monday.
“The merged entity will undergo a two- to three-month period of integration planning and implementation during which each business will continue to operate independently before final integration,” they said.
“We are very excited about the opportunity to further accelerate the growth of online fashion retail in South Africa. We look forward to welcoming Spree into the Takealot group,” said Takealot CEO Kim Reid in the statement.
Explaining the decision to merge, the companies said: “There is currently no integration between Spree and Superbalist, both part of the Naspers group, with each business running its own sourcing and buying, technical, marketing, warehousing and logistics functions while primarily targeting a similar, if not the same, customer segment and demographic in South Africa. Merging the two businesses into a single entity will create a larger, more focused platform on which to build a substantial online retail, footwear and apparel business.”
They said clothing and footwear sales in the US, UK, China and India have driven a large share of the growth of online retail. “This suggests there is room to build a substantial position in the online footwear and apparel market in South Africa.”
Terms of the deal have not been disclosed. — © 2018 NewsCentral Media