The world’s largest retailer finalised its purchase of 51% of local discounter Massmart on June 20.
The South African Commercial Catering and Allied Workers Union (Saccawu) has filed a notice of appeal against the transaction with the country’s Competition Appeal Court, the two companies said.
“Saccawu’s notice of appeal has no impact on the implementation of the transaction,” the companies said.
South African competition authorities approved the deal with token conditions last month. Experts have said unions may have some legal room to dispute the deal.
Filing the notice is an early stage in the appeal process.
No one was immediately available for comment at Saccawu.
“This is not an unexpected development and the companies
remain firm in their belief that the transaction rests on solid legal ground,”
the retailers said.
Massmart said on Sunday it aims to create 15 000 jobs in South Africa and increase its procurement of food and consumer goods by an additional R60bn over the next five years.
Shares of Massmart were up 1.3% at R140.25 in afternoon trade, compared with a 1% rise in the Top 40 [JSE:J200] index of blue chips.