Publications
Partners
Johannesburg - The SA SMME Forum has met the Competition Commission to discuss concerns about the proposed merger between giant retailer Walmart and local company Massmart Holdings [JSE:MSM], the forum said on Monday.
"The forum last Friday met with the commission and furnished further documents in respect of its initial filings on the proposed merger transaction between Walmart and Massmart," said Tebogo Khaas, president of the forum, which represents small, medium and micro enterprises.
This followed a request from the commission.
"In its detailed submissions (both oral and documentary) to the commission, the forum has reaffirmed its original position on the matter and provided further details re the extent of the potential prejudice this transaction could give rise to in respect to small businesses in South Africa, especially those with supply agreements with Massmart," Khaas said.
Last month, the forum said Walmart's China trade had had a negative effect on US jobs and small business development since 2001.
The forum had asked the commission to consult it on the proposed merger proceedings.
US firm Walmart has made an offer of about R17bn to acquire a 51% stake in Massmart.
Massmart's board had said it was "unanimous" in support of the proposed deal, which would see Walmart pay R148 per ordinary share.
However, it still needed the support of a two-thirds majority of shareholders and the Competition Commission.
Massmart's brands include Game, Dion Wired, Makro, Builders Warehouse, Builders Express, Builders Trade Depot, CBW, Jumbo Cash and Carry and the Shield buying group.
"The forum last Friday met with the commission and furnished further documents in respect of its initial filings on the proposed merger transaction between Walmart and Massmart," said Tebogo Khaas, president of the forum, which represents small, medium and micro enterprises.
This followed a request from the commission.
"In its detailed submissions (both oral and documentary) to the commission, the forum has reaffirmed its original position on the matter and provided further details re the extent of the potential prejudice this transaction could give rise to in respect to small businesses in South Africa, especially those with supply agreements with Massmart," Khaas said.
Last month, the forum said Walmart's China trade had had a negative effect on US jobs and small business development since 2001.
The forum had asked the commission to consult it on the proposed merger proceedings.
US firm Walmart has made an offer of about R17bn to acquire a 51% stake in Massmart.
Massmart's board had said it was "unanimous" in support of the proposed deal, which would see Walmart pay R148 per ordinary share.
However, it still needed the support of a two-thirds majority of shareholders and the Competition Commission.
Massmart's brands include Game, Dion Wired, Makro, Builders Warehouse, Builders Express, Builders Trade Depot, CBW, Jumbo Cash and Carry and the Shield buying group.
