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Johannesburg - Global retail group Walmart said on Friday that it appreciated the statement by the Department of Trade and Industry's acting director general, Lionel October, in which he said that the government's recent actions do not signal opposition to foreign investment in SA.
The department recently intervened in two bids by foreign firms to acquire local companies. In the Walmart takeover of Massmart [JSE:MSM], the state asked the Competition Tribunal to impose local procurement conditions on the deal.
October was quoted in the Business Day newspaper as saying that the department had also asked the Competition Tribunal to insist on local sourcing as a matter of "public interest".
The scheduled Competition Tribunal hearing regarding the mega deal between Walmart and Massmart was unexpectedly delayed until May 9 to 13, after the government and unions asked for more time to submit information.
Massmart's shareholders in January approved Walmart's R16.5bn offer for a 51% stake in Massmart - a scaled-down proposal from a R32bn buyout offer.
Despite numerous assurances from both Walmart and Massmart that they would continue to honour all existing union agreements and South African labour law, unions remain stubbornly opposed to the deal.
"We agree with his (October's) view that many are looking to Walmart's investment in Massmart as a window into this issue, and we hope to be in a position to encourage others to invest in Africa's vibrant economy," the retailer said.
Walmart said it shared the need to be sensitive to the local supply chain, and remained committed to working closely with local suppliers and expanding opportunities for them to source Massmart as well as Walmart's global supply chain.
"We have a global track record of working directly with small farmers to increase their income and help them become more sustainable, and plan to bring those practices to SA as well.
"We are excited about the opportunity to create jobs and are committed to partner with the South African government and key stakeholders," said Walmart.
The department recently intervened in two bids by foreign firms to acquire local companies. In the Walmart takeover of Massmart [JSE:MSM], the state asked the Competition Tribunal to impose local procurement conditions on the deal.
October was quoted in the Business Day newspaper as saying that the department had also asked the Competition Tribunal to insist on local sourcing as a matter of "public interest".
The scheduled Competition Tribunal hearing regarding the mega deal between Walmart and Massmart was unexpectedly delayed until May 9 to 13, after the government and unions asked for more time to submit information.
Massmart's shareholders in January approved Walmart's R16.5bn offer for a 51% stake in Massmart - a scaled-down proposal from a R32bn buyout offer.
Despite numerous assurances from both Walmart and Massmart that they would continue to honour all existing union agreements and South African labour law, unions remain stubbornly opposed to the deal.
"We agree with his (October's) view that many are looking to Walmart's investment in Massmart as a window into this issue, and we hope to be in a position to encourage others to invest in Africa's vibrant economy," the retailer said.
Walmart said it shared the need to be sensitive to the local supply chain, and remained committed to working closely with local suppliers and expanding opportunities for them to source Massmart as well as Walmart's global supply chain.
"We have a global track record of working directly with small farmers to increase their income and help them become more sustainable, and plan to bring those practices to SA as well.
"We are excited about the opportunity to create jobs and are committed to partner with the South African government and key stakeholders," said Walmart.
