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Johannesburg - The Competition Tribunal's hearings into US retailer Walmart's planned acquisition of Massmart resume on Monday.
The hearings are set down for May 9 to 13. May 16 is reserved for legal argument.
The hearings were postponed in March after a request from the departments of economic development, trade and industry, and agriculture, fisheries and forestry, as well as legal representatives of various union bodies who wanted to participate in the merger hearings, as they considered them to raise "very significant public interest issues".
The hearings were then postponed on procedural grounds.
The Anti-Walmart Coalition - consisting of various trade unions, including the SA Commercial, Catering and Allied Workers' Union (Saccawu), SA Clothing and Textile Workers' Union (Sactwu), labour federation Cosatu and civil society organisations - opposes the Walmart/Massmart deal because of the negative consequences it sees for Massmart workers, the wholesale and retail sector and its supply chains.
UNI Global Union, a worldwide umbrella union representing 20 million workers, is also part of the coalition.
On Monday, Massmart CEO Grant Pattison and Walmart executive vice president Andy Bond are scheduled as witnesses, according to the Competition Tribunal's website.
Over the course of Monday to Wednesday, Saccawu and Sactwu will also give evidence.
On Thursday and Friday scheduled witnesses include former Pick n Pay chairman Raymond Ackerman, although the tribunal website has him down as representing Shoprite/Checkers, and officials from the interested government departments.
Members of the Anti-Walmart Coalition either want the Walmart deal rejected, or want to set conditions to protect South Africa and its workers.
Pattison said he was sure the deal would be approved.
He was "confident the transaction would pass scrutiny by the Competition Tribunal on its merits, once the parties had an opportunity to present arguments", he said in March when proceedings were postponed.
Pattison said if Massmart/Walmart were to have to guarantee a minimum percentage of local procurement, as unions had demanded, it would place it at a disadvantage relative to its competitors.
"We are fully supportive of local manufacturing, but it would be disruptive of the competition process championed under the Competition Act to impose local procurement targets on one retailer (Massmart) to the exclusion of its competitors."
The Competition Commission has recommended the transaction go through with no conditions. In January, shareholders voted to accept Walmart's bid to acquire 51% of Massmart for R148 a share in a deal worth around R17bn.
The Massmart group includes Game, Dion Wired, Makro, Builders Warehouse and Masscash.
Walmart operates around the world, including Canada, Brazil, China, Chile, Japan and Mexico. It wants to buy the stake in Massmart to get a stake in emerging African markets.
The tribunal's website reads: "According to Walmart, its rationale for entering into the transaction is a desire to be in emerging markets, especially South Africa and the sub-Saharan region.
"Walmart believes South Africa is a key market for growth, accounting for approximately 20 percent of consumer spending on the African continent as a whole.
"Walmart also believes South Africa is a sophisticated market with a stable economic, political and regulatory environment. It sees Massmart as an ideal entry point into the region."
The hearings are set down for May 9 to 13. May 16 is reserved for legal argument.
The hearings were postponed in March after a request from the departments of economic development, trade and industry, and agriculture, fisheries and forestry, as well as legal representatives of various union bodies who wanted to participate in the merger hearings, as they considered them to raise "very significant public interest issues".
The hearings were then postponed on procedural grounds.
The Anti-Walmart Coalition - consisting of various trade unions, including the SA Commercial, Catering and Allied Workers' Union (Saccawu), SA Clothing and Textile Workers' Union (Sactwu), labour federation Cosatu and civil society organisations - opposes the Walmart/Massmart deal because of the negative consequences it sees for Massmart workers, the wholesale and retail sector and its supply chains.
UNI Global Union, a worldwide umbrella union representing 20 million workers, is also part of the coalition.
On Monday, Massmart CEO Grant Pattison and Walmart executive vice president Andy Bond are scheduled as witnesses, according to the Competition Tribunal's website.
Over the course of Monday to Wednesday, Saccawu and Sactwu will also give evidence.
On Thursday and Friday scheduled witnesses include former Pick n Pay chairman Raymond Ackerman, although the tribunal website has him down as representing Shoprite/Checkers, and officials from the interested government departments.
Members of the Anti-Walmart Coalition either want the Walmart deal rejected, or want to set conditions to protect South Africa and its workers.
Pattison said he was sure the deal would be approved.
He was "confident the transaction would pass scrutiny by the Competition Tribunal on its merits, once the parties had an opportunity to present arguments", he said in March when proceedings were postponed.
Pattison said if Massmart/Walmart were to have to guarantee a minimum percentage of local procurement, as unions had demanded, it would place it at a disadvantage relative to its competitors.
"We are fully supportive of local manufacturing, but it would be disruptive of the competition process championed under the Competition Act to impose local procurement targets on one retailer (Massmart) to the exclusion of its competitors."
The Competition Commission has recommended the transaction go through with no conditions. In January, shareholders voted to accept Walmart's bid to acquire 51% of Massmart for R148 a share in a deal worth around R17bn.
The Massmart group includes Game, Dion Wired, Makro, Builders Warehouse and Masscash.
Walmart operates around the world, including Canada, Brazil, China, Chile, Japan and Mexico. It wants to buy the stake in Massmart to get a stake in emerging African markets.
The tribunal's website reads: "According to Walmart, its rationale for entering into the transaction is a desire to be in emerging markets, especially South Africa and the sub-Saharan region.
"Walmart believes South Africa is a key market for growth, accounting for approximately 20 percent of consumer spending on the African continent as a whole.
"Walmart also believes South Africa is a sophisticated market with a stable economic, political and regulatory environment. It sees Massmart as an ideal entry point into the region."
