• SA cities need foreigners

    We need to protect our cities' cosmopolitan nature, says Mzwandile Jacks.

  • Am I a racist?

    Does hating government's arrogance, nepotism and greed make me a bigot, asks Anton Ressel.

  • Recipe for disaster

    Malema's flames of frustration are fuelling white extremism, says Leopold Scholtz.

Loading...
See More

Massmart welcomes court ruling

Oct 09 2012 17:33

Company Data

MASSMART HOLDINGS LIMITED [JSE:MSM]

Last traded 154
Change -4
% Change -2
Cumulative volume 375056
Market cap 0

Last Updated: 17-04-2015 at 05:00. Prices are delayed by 15 minutes. Source: McGregor BFA

Related Articles

Massmart profit misses the mark

Walmart shares drop on Mexico scandal

How Massmart, ABI scored in townships

Vavi attacks Walmart deal

Walmart advent a boon to SA shoppers

Walmart is the new gold

 

Johannesburg - Retailer Massmart Holdings [JSE:MSM] welcomed a Competition Appeal Court ruling on Tuesday which provides clarity on its supplier development fund.

"The clarity provided on the mechanics and focus of the supplier development programme is a positive endorsement of the initiative," Massmart said in a statement.

The Competition Appeal Court (CAC) ruled that Massmart should contribute R200m to a supplier development fund over five years.

Initially, Massmart volunteered to set up a R100m fund in response to concerns that its deal with United States retail giant Walmart would hurt local suppliers.

Walmart bought a 51% stake in Massmart, a deal which was approved by competition authorities subject to conditions, including the establishment of the supplier fund.

In March, the CAC ordered the establishment of a panel of experts representing the SA Commercial, Catering and Allied Workers' Union (Saccawu), the ministers of economic development, trade and industry and agriculture, forestry and fisheries and the merging parties.

These experts had to look into the best means by which South African small and medium suppliers could participate in Walmart's global and domestic value chain.

Massmart was happy that the court had decided it "has flexibility, at its discretion, to invest up to R200m over the next five years in identifying and assisting micro, small and medium suppliers that can benefit most from Massmart-Walmart's expertise.

"In this context, we agree with the CAC that the focus of the programme on upgrading skills is a more important consideration than the quantum of monies invested," Massmart said.

It said the CAC's decision "closes this chapter".

Massmart CEO Grant Pattison said: "We look forward to working with the fund's advisory board to achieve an impactful supplier development programme."

The government and Saccawu had appealed to the CAC to review and set aside the Competition Tribunal's approval of the merger.

The CAC dismissed this application and instead requested the expert report on the supplier fund.

* Follow Fin24 on TwitterFacebookGoogle+ and Pinterest.  

massmart  |  walmart

 
 
 

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
0 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

Brought to you by BizNews

More from BizNews

We're talking about:

SMALL BUSINESS

Johannesburg has been selected to host the Global Entrepreneurship Congress in 2017. "[The congress] will ensure that small business development remains firmly on the national agenda and the radar screen of all stakeholders, the Small Business Development minister said.
 
 

Must see! The most luxurious dog house!

This dog house comes with a treadmill and hot tub, you have to see it!

 
 

Luxury living

WIN!
Ridiculous demands people with too much money make
8 of the priciest places to dock your yacht
Habits of the world’s richest people

Money Clinic

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

Voting Booth

Government’s call for the private sector to add power to the grid is:

Previous results · Suggest a vote

Loading...