Regional retailer Nakumatt Holdings’ bid to acquire three Shoprite outlets in Tanzania got a shot in the arm with the resolution of a case filed by employees of the supermarket.

Shoprite employees had moved to court blocking the Shoprite buyout by Nakumatt over fears that they would lose their benefits with changes in ownership of the business.

A Tanzanian court ordered the South African retail giant Shoprite to pay terminal benefits to its staff in line with labour contracts it had signed with them.

The Tanzania Union of Industrial and Commercial Workers (Tuico) subsequently withdrew the suit, paving the way for Nakumatt’s quest to take over the business.

“The court ruled in favour of the employees and we have made all the necessary payments to the staff involved and are in the final stages of handing over the store to Nakumatt,’’ said a senior manager at Shoprite who sought anonymity since he is not authorised to disclose details of the ongoing transaction to the media.

Contacted, Nakumatt Holdings’ head of strategy and operations Thiagarajan Ramamurthy confirmed to the that the case filed by Tuico had been settled, adding that they are edging closer to taking over the Shoprite shops.

“The payments to the claimants have so far been settled, I’m not in a position to divulge more details,” said Mr Ramamurthy.

Tuico assistant secretary general Linus Mapunda could not be reached for comment as his phone went unanswered.

Nakumatt,  which is  Kenya’s largest retailer, will take over two Dar es Salaam Shoprite stores and one in Arusha at an estimated cost of Sh4 billion.

READ: Nakumatt to open stores in Dar, Juba and Bujumbura