Massmart eyes fresh produce supplier
Johannesburg - Massmart Holdings [JSE:MSM] is looking to buy a local fresh produce supplier just weeks after its own acquisition by US retail giant Walmart, Business Day reported on Tuesday, citing a spokesperson.
"Massmart can confirm that an application relating to the potential acquisition of Fruitspot by Massmart was lodged with the Competition Commission today," Massmart spokesperson Brian Leroni is reported as saying.
Johannesburg-based Fruitspot supplies other retailers, including listed chain Spar Group [JSE:SPP], the report said.
Walmart, the world's largest retailer, finalised a $2.4bn purchase of 51% of discount retailer Massmart, after winning approval with minimal conditions from South Africa's competition authorities.
Under the conditions, Massmart must not cut jobs for two years, honour existing labour agreements and work to develop local suppliers. Unions had demanded strict targets on using local manufacturers.
sooon we will have not other shops but walmart. and iam not a prophet.
i have to say its a smart move my massmart or wallmart whatever they call themselves
Very smart move. Will counter Fruit and Veg chain.
@letswai: that's why we have the competition commission, to stop one company swallowing the rest.
FRUITSPOT WILL BE THE SORRY ONES AND SPAR CAN READY ITS SELF TO FUND MASSMART'S MARGIN AS IT PAYS MORE >
Control of the supply chain is how they gain competitive advantage. Good business move...