Govt doesn't want to block Walmart deal
RETAILER NEWS
Fin24 - Jul 25th 2011, 10:44
Johannesburg - Government is not seeking to overturn competition regulators' approval of Walmart buying control of local retailer Massmart Holdings, but wants tougher conditions for the deal, the Business Day newspaper reported on Monday.
Wal-Mart finalised its $2.4bn purchase of 51% of discount retailer Massmart on June 20, after winning approval with minimal conditions from South Africa's Competition Tribunal.
It was reported last week that the government was appealing against the tribunal's decision and wanted the court to either set aside the ruling or send the matter back for further consideration.
But Business Day quoted department of trade and industry director general Lionel October as saying the government wants the antitrust authority to increase potential penalties for the companies if jobs are lost or local products are swamped by a surge in imports.
"The thrust is not blocking the merger any more. We're more looking at the condition they gave," October was quoted as saying.
One option being considered was to change the conditions of the R100m fund to help local suppliers which was part of the deal.
October said if it could be shown that jobs were lost because Walmart was not buying from the local supply chain, then the US retailer would have a duty to improve on the programme.
Related Retailers
 | MassmartThe Massmart Group comprises nine wholesale and retail chains, and one buying group - 288 stores and 470 buying Group members all focused on high-volume and low-cost distribution. They operate in 14 countries in sub-Saharan Africa through the Groupâ€...Click here to read more about Massmart |
| MassmartThe Massmart Group comprises nine wholesale and retail chains, and one buying group - 288 stores and 470 buying Group members all focused on high-volume and low-cost distribution. They operate in 14 countries in sub-Saharan Africa through the Groupâ€...Click here to read more about Massmart |
Related News
Will SA remain biggest African economy?
15/05/2012 - 10:44
KPMG, the global consultancy firm, says SA is no longer the only gateway into Africa and it repeated previous statements by economists that the country could eventually lose its title of being the continent’s largest economy.
Walmart ‘shaking up’ SA business
14/05/2012 - 08:58
The increasing internationalisation of Africa’s retail industry — specifically Walmart’s entry to the market — has shaken up SA’s supply chain, forcing local solutions companies to reinvent themselves, Amalgamated Appliance Holdings (Amap) CEO Alan Coward said on Friday.
Massmart stock dips as sales disappoint
09/05/2012 - 07:52
Markets were disappointed by Walmart-controlled Massmart ’s sales update released yesterday, with its shares falling as much as 2,5% to reach their lowest level in almost a month.
Walmart can learn ‘a thing or two’ from Massmart method
07/05/2012 - 08:50
Everyone expected all the learnings to come from Walmart. There was an expectation within the retail industry that Walmart would change how Massmart does business not only within the company itself, but for its suppliers and mostly its customers.
Supply Chain Company Releases 3D Virtualisation Solution for Retailers
25/04/2012 - 09:45
JDA® Software Group, Inc. (NASDAQ: JDAS), The Supply Chain Company®, today announced the release of JDA® 3D, an integrated category optimisation and three dimensional (3D) virtualisation solution that provides true consumer-driven collaboration and visibility that is faster, less expensive, more interactive and incorporates the consumer’s point of view. Powered by Red Dot Square, JDA 3D transforms space and floor planning solutions into a smart, interactive photo-realistic world.
ZaPOP
