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Pretoria - South Africa's biggest grocer, Shoprite Holdings [JSE:SHP], warned on Thursday it would be forced to rely more on cheap imports if one of its rivals, Massmart Holdings [JSE:MSM], is taken over by US discount retailer Walmart.
The Competition Tribunal is hearing testimony until next Monday on whether to allow Walmart to go ahead with its R16.5bn offer for 51% of discount retailer Massmart.
The government and unions are concerned Walmart's global sourcing network would open the country to a flood of cheap Asian imports, undermining local suppliers and threatening jobs.
"For Shoprite to protect its image in South Africa, where it is known for cheaper prices ... there would be no other alternative but to import," Gerhard Ackerman, Shoprite's director of food buying and imports, told the hearing.
Massmart currently sources about 60% of its products from domestic manufacturers and its CEO Grant Pattison has said he is committed to continue using local suppliers.
Nevertheless, Pattison has also said the government could jeopardise the deal if it demands Walmart meet local procurement targets.
Shoprite, which caters to the lower end of the retail food sector, has a market value of $7.9bn, making it almost double the size of Massmart, which is worth about $4.1bn.
The Competition Tribunal is hearing testimony until next Monday on whether to allow Walmart to go ahead with its R16.5bn offer for 51% of discount retailer Massmart.
The government and unions are concerned Walmart's global sourcing network would open the country to a flood of cheap Asian imports, undermining local suppliers and threatening jobs.
"For Shoprite to protect its image in South Africa, where it is known for cheaper prices ... there would be no other alternative but to import," Gerhard Ackerman, Shoprite's director of food buying and imports, told the hearing.
Massmart currently sources about 60% of its products from domestic manufacturers and its CEO Grant Pattison has said he is committed to continue using local suppliers.
Nevertheless, Pattison has also said the government could jeopardise the deal if it demands Walmart meet local procurement targets.
Shoprite, which caters to the lower end of the retail food sector, has a market value of $7.9bn, making it almost double the size of Massmart, which is worth about $4.1bn.
