Windhoek - A Namibian court has quashed a competition watchdog ruling that placed local conditions on Walmart's planned takeover of South African retailer Massmart Holdings [JSE:MSM]
, a newspaper said on Friday.
Massmart operations in Namibia include retailers such as Game and Builders Warehouse. The country's regulator had said the US retail giant's takeover should be subject to conditions relating to local ownership and prevention of job losses.
Walmart contested the decision in the Namibian High Court, which described the conditions as "arbitrary and irritional and impermissibly vague", and said they ran contrary to the Foreign Investment Act, the Namibian daily reported.
The judgment, which was awarded to Walmart with costs, means the $2.3bn acquisition of Massmart is now subject only to a decision by South African competition authorities. A hearing is scheduled for May 9.
Regulators in other African countries where Massmart operates have already given the deal the green light. The merger will affect operations in 14 countries.