Loading...
See More

Crucial Walmart verdict out soon

Feb 29 2012 10:32 Sapa

Company Data

MASSMART HOLDINGS LIMITED [JSE:MSM]

Last traded 0
Change 0,17
% Change 0
Cumulative volume 33630
Market cap 29.54bn

Last Updated: 27-11-2014 at 01:08. Prices are delayed by 15 minutes. Source: McGregor BFA

Related Articles

Massmart ups profit on forex

Massmart deals approved with conditions

Walmart launches global graft probe

IMF: Walmart's SA entry was transparent

US keeps close eye on Walmart appeal

Massmart promises fund to benefit locals

 

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

"The judgment is important because it will set a precedent for how the South African competition authorities are to balance the competition effects of a merger with public interest considerations," law firm Webber Wentzel said on Wednesday.

Judge Dennis Davis will hand down 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 R16.5bn for a 51% stake in Massmart Holdings [JSE:MSM], South Africa's biggest food and general goods wholesaler, in June last year.

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

These included the setting up of a R100m fund to assist local suppliers and agreeing that no jobs would be cut 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 reassessment.

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 SA Commercial, Catering, and Allied Workers' Union (Saccawu) 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.

Saccawu was also concerned that Walmart had an "anti-union philosophy" which would minimise rather than advance jobs.

The union wanted structural remedies put in place to protect workers, and for the supplier development fund to be increased to at least R500m.

 
walmart  |  massmart holdings

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
2 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're talking about:

Small Business

Retailers of any shape and size can now unlock the power of mobile transacting.
 
 

Goalkeeper saves five penalties with his FACE!

Nothing, and we mean nothing, will keep goalkeeper Scott Stirling from stopping the ball!

 
 

Men24.com

This invention makes farts smell like chocolate!
11 things men don’t know about their clothes
Hilarious mortal kombat elevator prank!
Hottie of the day: Nicole Meyer!

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...