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Pretoria - The Competition Commission said on Monday Walmrt's planned acquisition of Massmart Holdings [JSE:MSM] should be approved with conditions, including the re-hiring of 503 sacked workers.
The surprise change of heart by the Commission adds a twist to a separate hearing into the R16.5bn ($2.4bn) deal being conducted by the Competition Tribunal.
After a week of testimony, the Tribunal hearings are expected to conclude on Monday, with judgement reserved for at least 10 working days on whether to allow the US retailer to go ahead and buy 51% of discount retailer Massmart.
"The commission recommends that the merger be approved with the following conditions. That all the 503 employees be reinstated and that the merged entity honour existing agreements with trade unions for a period of three years," commission lawyer Patric Mtshaulana said.
The employees were sacked in June 2010, prior to the deal being announced. Unions argued that the action was Massmart dressing itself up for a potential tie-up.
The government and unions fear the takeover could lead to job cuts and a flood of cheap Asian imports, and are pressing for guarantees to prevent job losses and maintain local procurement.
In a separate move in neighbouring Namibia, the Competition Commission said it would appeal a Windhoek High Court decision preventing it from attaching conditions to Walmart's takeover of Massmart's Namibian operations.
The surprise change of heart by the Commission adds a twist to a separate hearing into the R16.5bn ($2.4bn) deal being conducted by the Competition Tribunal.
After a week of testimony, the Tribunal hearings are expected to conclude on Monday, with judgement reserved for at least 10 working days on whether to allow the US retailer to go ahead and buy 51% of discount retailer Massmart.
"The commission recommends that the merger be approved with the following conditions. That all the 503 employees be reinstated and that the merged entity honour existing agreements with trade unions for a period of three years," commission lawyer Patric Mtshaulana said.
The employees were sacked in June 2010, prior to the deal being announced. Unions argued that the action was Massmart dressing itself up for a potential tie-up.
The government and unions fear the takeover could lead to job cuts and a flood of cheap Asian imports, and are pressing for guarantees to prevent job losses and maintain local procurement.
In a separate move in neighbouring Namibia, the Competition Commission said it would appeal a Windhoek High Court decision preventing it from attaching conditions to Walmart's takeover of Massmart's Namibian operations.
