SA reassures foreign investors: report
Johannesburg - South Africa is not against foreign investment, Business Day reported on Tuesday, amid worries that its intervention in takeover hearings involving Walmart and Kansai Paint could put off investors.
Walmart is in the last stages of taking control of local retailer Massmart Holdings [JSE:MSM] for $2.3bn, a deal the government said would open floodgates to imports that would undermine domestic manufacturers.
Japan's Kansai Paint, which is in the middle of a $260m takeover of Freeworld Coatings [JSE:FWD], is also facing government opposition.
Business Day newspaper said the trade and industry department is worried that Kansai is taking over a unique South African technology that adds a local component in auto manufacturing.
"It's important to stress that the department is motivated by these considerations and this intervention should not be construed as opposition to foreign direct investment," Lionel October, the department's acting director general was quoted as saying.
No one in the department could immediately comment.
I believe that no foreign company should be allowed to have more than a 49% stake in a South African company. more than that would see SA losing its edge in certian fields. Take Mittal steel for example and the freeworld coatings.
I really get annoyed if people say capitalism is unfair - capitalism rewards hard work, investment and risk.
Socialism pays people for who did not earn it, socialism is a a free meal someone else pays. This is rewarding hard work with punishment and laziness with wealth. Crazy.
In this Brad you want socialism, you want a foreign company to take the risk for the benefit of South Africans? This company employs locals and pays tax, carries the risk and that is enough. You want 51% to be in the hands of South Africans? Way to kill the golden goose you lazy bum.
The same applies to mining, where has the tax paid by mining houses gone to... in to the ANC pockets, the very same ANC who says the mines rape the South African resources. Tax is, ownership. Tax is applied before dividends are paid to shareholders. South Africa already owns close to 40% of all mining houses.
The money is just never seen by the likes of yellow T-shirt wearing bums.