RETAIL giant OK Zimbabwe on Friday (today) announced the strategic acquisition of Food Lovers Market Zimbabwe as part of broader diversification that enhances the company’s participation in the premium retailing of gourmet food as well as fruit and vegetables categories.
In December, the business entity notified shareholders that negotiations are at an advanced stage to acquire the Food Lovers Market business in Bulawayo, Borrowdale and Avondale.
In a trading update for the six month period ended 30 September, released in December, board chairman, Mr Herbert Nkala said talks had since received a major boost by receiving the requisite regulatory approvals and is now proceeding to conclude the transaction.
Announcing the development, Company Secretary, Mrs Margaret Munyuru said “The Board and Management of OK Zimbabwe Limited formally announce the strategic acquisition of Food Lovers Market Zimbabwe.
“The Company successfully concluded the acquisition of the assets and business of Talwant Investments (Private) Limited trading as Food Lovers Market in Harare’s Borrowdale and Avondale as well as Bradfield, Bulawayo.”
However, she said the transaction excludes the Greendale store which remains independently owned.
“The transaction includes the grant of a Territorial License Agreement which endows OK Zimbabwe Limited with territorial exclusivity for the expansion of the Food Lovers Market Brand within the Zimbabwean market,” she added.
OK Zimbabwe Limited Group Chief Executive Officer, Mr Max Karombo said: “The Group also welcomes access to promising supply chain synergies within the Food Lovers Market ecosystem and the rest of the OK Zimbabwe Limited Group. Our expectation is to build economies of scale in supporting local farmers and food processors to serve a wider range of stores.” – Chronicle
