Ellerines and Beares join Lewis
The Namibian Competition Commission (NaCC) has approved the proposed merger of Lewis Stores Namibia, Ellerines and Beares on condition that there are no retrenchments of employees of the merged undertakings for a period of two years.
Such retrenchments do not include voluntary separation and voluntary early retirement and retrenchments which are merger specific.
Another condition under which approval for the merger was granted is that all employees transferred from Ellerines and Beares will be employed by Lewis Namibia on terms and conditions of employment that are on the whole not less favourable to them than their existing terms and conditions of employment.
NaCC this week said its decision was based on the grounds that the proposed transaction is not likely to substantially prevent or lessen competition in Namibia as there remain competitors to the merging parties after the merger.
It, however, said that the rebranding or repositioning of the Beares brand or stores to target a higher income customer segment of the market in the retail of household furniture and appliances might not be feasible in some parts of the country.
Lewis Stores (Namibia) has been granted approval for the merger to acquire 21 Ellerines and Beares stores across the country. This acquisition brings Lewis Group’s presence in Namibia to 49 stores, which are expected to be integrated into the Lewis Group’s operations by early May.
Eighteen of the stores will in future trade under the Beares brand and three will be rebranded as Lewis stores.
The Namibian stores are part of the Lewis Group’s N$250 million acquisition of 57 Ellerines and Beares stores in Southern Africa.
NaCC said the transaction was found “to have no negative impact on employment, as all Lewis employees were to be retained post merger”.
“Hence, no employees were to be made redundant or be retrenched as a result of the implementation of the proposed merger,” NaCC noted.
Lewis had earlier this year said the merger would protect 252 jobs in Namibia.
The Namibian Financial Supervisory Institutions Authority (Namfisa) also this week (24 April) said it has decided to engage independent service providers, or non-Namfisa staff, to perform on its behalf an investigation into alleged illegal charging of debts by Lewis.
Namfisa has similarly received over 110 applications from Lewis sales personnel working at its various branches to be registered as insurance agents.
Isack Hamata, Namfisa’s manager of corporate communications, said at least half of the 110 applications have been granted approval to sell insurance products while the rest are still being processed, each on its own merits.
“Namfisa is happy that the furniture retail outlet has started to comply with our requirements,” Hamata said.
ISG Namibia had earlier objected to the merger and accused Lewis of selling long-term insurance without being authorised to do so.
CATHERINE SASMAN
Such retrenchments do not include voluntary separation and voluntary early retirement and retrenchments which are merger specific.
Another condition under which approval for the merger was granted is that all employees transferred from Ellerines and Beares will be employed by Lewis Namibia on terms and conditions of employment that are on the whole not less favourable to them than their existing terms and conditions of employment.
NaCC this week said its decision was based on the grounds that the proposed transaction is not likely to substantially prevent or lessen competition in Namibia as there remain competitors to the merging parties after the merger.
It, however, said that the rebranding or repositioning of the Beares brand or stores to target a higher income customer segment of the market in the retail of household furniture and appliances might not be feasible in some parts of the country.
Lewis Stores (Namibia) has been granted approval for the merger to acquire 21 Ellerines and Beares stores across the country. This acquisition brings Lewis Group’s presence in Namibia to 49 stores, which are expected to be integrated into the Lewis Group’s operations by early May.
Eighteen of the stores will in future trade under the Beares brand and three will be rebranded as Lewis stores.
The Namibian stores are part of the Lewis Group’s N$250 million acquisition of 57 Ellerines and Beares stores in Southern Africa.
NaCC said the transaction was found “to have no negative impact on employment, as all Lewis employees were to be retained post merger”.
“Hence, no employees were to be made redundant or be retrenched as a result of the implementation of the proposed merger,” NaCC noted.
Lewis had earlier this year said the merger would protect 252 jobs in Namibia.
The Namibian Financial Supervisory Institutions Authority (Namfisa) also this week (24 April) said it has decided to engage independent service providers, or non-Namfisa staff, to perform on its behalf an investigation into alleged illegal charging of debts by Lewis.
Namfisa has similarly received over 110 applications from Lewis sales personnel working at its various branches to be registered as insurance agents.
Isack Hamata, Namfisa’s manager of corporate communications, said at least half of the 110 applications have been granted approval to sell insurance products while the rest are still being processed, each on its own merits.
“Namfisa is happy that the furniture retail outlet has started to comply with our requirements,” Hamata said.
ISG Namibia had earlier objected to the merger and accused Lewis of selling long-term insurance without being authorised to do so.
CATHERINE SASMAN
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