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Johannesburg - Protesters danced outside the Cape High Court
on Thursday at the start of an appeal for a review of the merger between United
States retail giant Walmart and local company Massmart Holdings [JSE:MSM].
"Walmart is going to cost us thousands of jobs, we
can't allow them to come in," said one of the protesters, wearing a
"Coalition Against Walmart" T-shirt.
The appeal by the government at the Competition Appeal Court
is being heard by a panel of judges headed by Judge Dennis Davis.
It was expected to last for two days, but Monday has also
been set aside in case arguments extend longer than expected.
Earlier this month, four departments - agriculture, forestry
and fisheries; economic development; and trade and industry - filed their heads
of argument in the Walmart Massmart merger case.
They argued that Walmart's acquisition of Massmart could
have a "potentially devastating" effect on local jobs.
They wanted the transaction to be sent back to the
Competition Tribunal for proper consideration and for more effective conditions
to be imposed.
The government has argued that the merging parties will
increase imports, relying on Walmart's vast and extensive international
procurement capability.
Economic Development Minister Ebrahim Patel raised concern
that tens of thousands of jobs could be lost in the local factories supplying
Massmart and other local retailers.
Trade and Industry Minister Rob Davies said there was no
evidence that Massmart would create 15 000 jobs because of the merger, as it
had advertised.
Agriculture Minister Tina Joemat-Pettersson said the
implications of a displacement of local suppliers by Massmart would result in
lost income and most likely the loss of jobs.
The departments had asked the court to send the matter back to the Competition Tribunal for a more considered evaluation based on adequate information from the merger parties with a view to much stronger conditions being imposed.
