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Johannesburg - An appeal by the government for a review of
the Massmart Holdings [JSE:MSM] Walmart merger is expected to enter its second
day on Thursday.
The appeal was heard by the Competition Appeal Court in Cape
Town, by panel of three judges headed Judge Dennis Davis.
The departments of agriculture; forestry and fisheries;
economic development; and trade and industry are appealing to the Competition
Appeal Court to set aside various decisions by the Competition Tribunal.
These have allowed the merger between Walmart and Massmart,
subject to certain conditions.
The government departments, which filed their heads of argument earlier this month. They argue that Walmart's acquisition of Massmart could have a "potentially devastating" effect on local jobs.
They want the transaction to be sent back to the Competition
Tribunal for proper consideration and for more effective conditions to be
imposed.
Walmart and Massmart say in their heads of argument that it
had never seriously been contended that the merger would give rise to
competition concerns.
They argue that the merger would result in significant
pro-competitive and consumer welfare benefits in the form of significantly
lower prices.
It intended expanding its operations and creating jobs in
South Africa.
Outside court on Thursday, dozens of anti-Walmart
protesters sang "I'm a Communist" and "Awulethu' Mshini
Wami" (Bring me my Machine Gun).
The hearing is expected to last two days, but Monday has
also been set aside should the extra time be needed.
