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Johannesburg - The decision by the Competition Tribunal to give its “blessing” to Walmart’s acquisition of Massmart Holdings [JSE:MSM] is welcomed, the American Chamber of Commerce in SA (AmCham SA) said on Wednesday.
“We firmly believe that it will contribute positively to South Africa’s economic growth and job creation,” the association said.
“Amcham also extends its congratulations to Walmart for having successfully negotiated an entry to the South African market.”
The tribunal approved the deal with conditions that were proposed by Walmart and Massmart.
These included setting up a R100m supplier development fund, no merger-related retrenchments for two years, and the continued recognition of the SA Commercial Catering and Allied Workers Union for three years post the merger.
Walmart expects to complete the R16.5bn transaction to buy a 51% stake in Massmart within weeks.
Amcham SA said much of South Africa’s future prosperity relies on its ability to attract foreign investment. To do so, the country needs to portray itself as “investor friendly".
Fixed foreign investment was crucial to the job creation targets that the government had set, Amcham SA said.
It said the existence of a Competition Commission and Tribunal were important entities that positioned South Africa favourably on the international economic stage.
“We firmly believe that it will contribute positively to South Africa’s economic growth and job creation,” the association said.
“Amcham also extends its congratulations to Walmart for having successfully negotiated an entry to the South African market.”
The tribunal approved the deal with conditions that were proposed by Walmart and Massmart.
These included setting up a R100m supplier development fund, no merger-related retrenchments for two years, and the continued recognition of the SA Commercial Catering and Allied Workers Union for three years post the merger.
Walmart expects to complete the R16.5bn transaction to buy a 51% stake in Massmart within weeks.
Amcham SA said much of South Africa’s future prosperity relies on its ability to attract foreign investment. To do so, the country needs to portray itself as “investor friendly".
Fixed foreign investment was crucial to the job creation targets that the government had set, Amcham SA said.
It said the existence of a Competition Commission and Tribunal were important entities that positioned South Africa favourably on the international economic stage.
