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Walmart decision is due today
Walmart decision is due today

Walmart decision is due today

RETAILER NEWS

IOL Business - Mar 9th 2012, 08:50

Johannesburg - The Competition Appeal Court will release its judgment today on the review of the Walmart-Massmart merger. 

Judge Dennis Davis will hand down the judgment in Cape Town.

During the hearing in October, Davis said the court had the option of refusing the appeal, changing the conditions attached to the Competition Tribunal's approval, or agreeing to a review of the proceedings.

This would involve a new hearing by the tribunal.

The world's largest retailer, Walmart paid R16.5-billion for a 51-percent stake in Massmart, South Africa's biggest food and general goods wholesaler, in June.

This was after the Competition Tribunal approved the deal, subject to certain voluntary conditions.

These included the setting up of a R100-million fund to assist local suppliers and no job cuts for two years.

However, the departments of economic development, trade and industry, and agriculture, forestry, and fisheries objected and appealed to the Competition Appeal Court.

They want the merger sent back to the tribunal for re-assessment.

The government argued that the tribunal should have looked at whether the merger benefited local suppliers and job creation.

It said the conditions were inadequate and would result in a massive influx of imports that would undermine manufacturing output.

The South African Commercial, Catering, and Allied Workers' Union filed a separate appeal against the approval of the takeover on the grounds that the tribunal had failed to take adequate consideration of the public interest. - Sapa  

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