• Retribution will come

    Those who now pay the price for opposing a corrupt system shall rise again, says Solly Moeng.

  • Ego - the enemy within

    Successful people are humble in their aspirations and resilient in failure, says Ian Mann.

  • You can’t eat dust

    We should insist on products that save our soil and ensure food security, says Mandi Smallhorne.

All data is delayed
See More

Walmart: State's appeal unsubstantiated

Oct 20 2011 14:25

Company Data


Last traded 120
Change -2
% Change -2
Cumulative volume 316483
Market cap 0

Last Updated: 28-09-2016 at 05:00. Prices are delayed by 15 minutes. Source: McGregor BFA

Related Articles

D-day for govt appeal on Massmart case

Pick n Pay earnings fall short

Massmart eyes solid year as Q1 sales rise

Walmart China CEO quits

Walmart impact on agriculture dissected

Protesters back Walmart appeal

Cape Town - An appeal for a review of the merger between United States retail giant Walmart and local company Massmart Holdings [JSE:MSM] is "factually insupportable" and "legally misconceived", the Competition Appeal Court heard on Thursday.

The submission was made in the heads of argument of the merged firm's counsel, who include Jeremy Gauntlett and David Unterhalter.

The appeal started in the Cape High Court on Thursday and was brought by the departments of agriculture, forestry and fisheries; economic development; and trade and industry.

They want the review and setting aside of various decisions by the Competition Tribunal, which has allowed the merger subject to certain conditions.

Wim Trengove is arguing on behalf of the four departments.

In its submission, the merged firm said it had never seriously been contended that the merger gave rise to competition concerns. The merger was therefore not likely to substantially prevent or lessen competition in any relevant market.

The firm argued the merger would result in significant pro-competitive and consumer welfare benefits in the form of significantly lower prices. It intends expanding its operations and creating jobs in South Africa.

"Even if job losses were to occur through domestic manufacture displacement or consolidation in the retail sector, these will be dwarfed by the positive effect that the significant consumer gains associated with the merger would have on jobs, not only with Massmart but with the broader economy as well," the merged company said in its submission.

The appeal is being heard by a panel of three judges, headed by Judge Dennis Davis.

The appeal is expected to last two days, but Monday has also been set aside in case the hearing extends longer than expected.

Threat to jobs

The government departments, which filed their heads of argument earlier this month, argue that Walmart's acquisition of Massmart could have a "potentially devastating" effect on local jobs.

They want the transaction to be sent back to the Competition Tribunal for proper consideration and for more effective conditions to be imposed.

Economic Development Minister Ebrahim Patel raised concerns 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.

Dozens of anti-Walmart protesters sang "I'm a Communist" and "Awulethu' Mshini Wami" (Bring me my Machine Gun) outside the Cape High Court as the hearing got underway.

"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.


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
Comments have been closed for this article.

Company Snapshot

Money Clinic

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

Voting Booth

Do you use all your downloaded apps on your smartphone?

Previous results · Suggest a vote