IMF: Wal-Mart's SA entry transparent

IMF: Walmart's SA entry transparent

RETAILER NEWS

IOL Business - Nov 17th 2011, 11:04

Walmart's R16.5 billion acquisition of Massmart has been a transparent process with all the regulatory bodies playing their parts properly, says the International Monetary Fund (IMF).  

This was the view of the IMF's resident reporter in SA Alfredo Cuevas on Wednesday before Parliament's Standing Committee on Finance.

Cuevas was answering a question from ANC MP Nick Koornhof on what the international perception was of SA as an investment destination as three cabinet ministers had decided to oppose the Wal-Mart entry through court action.

Koornhof was referring to the action brought about last month by Economic Development Minister Ebrahim Patel, Trade & Industry Minister Rob Davies and Agriculture, Forestry and Fisheries Minister Tina Joemat-Pettersson wanting the Competition Appeals Court to apply stricter conditions to the entry of the giant US retailer into the local market.

The three ministers have also supported a plea by trade union Saccawu in the same court to have the Competition Tribunal's granting of approval to be overturned.

“The entry of an international company into any domestic market is always controversial,” Cuevas said. “The Competition Tribunal issued a verdict based on its mandate and the most striking thing was not the controversy, but that the process has been very transparent and played out properly.” - I-Net Bridge