Data provided by iNet BFA
Loading...
See More

SA warns of job losses in Walmart deal

May 09 2011 11:29 Reuters

Company Data

MASSMART HOLDINGS LIMITED [JSE:MSM]

Last traded 144.66
Change -0.34
% Change 0.00
Cumulative volume 92474
Market cap 31.41bn

Last Updated: 24/07/2014 at 02:25. Prices are delayed by 15 minutes. Source: McGregor BFA

MTN GROUP LIMITED [JSE:MTN]

Last traded 222.25
Change -0.15
% Change 0.00
Cumulative volume 2445968
Market cap 411.14bn

Last Updated: 24/07/2014 at 02:38. Prices are delayed by 15 minutes. Source: McGregor BFA

Related Articles

'Walmart deal must not undermine SA'

Escalate anti-Walmart campaign: Vavi

SA reassures foreign investors: report

African M&A deals hit record

SA wants Walmart assurance on jobs

Indian firms join scramble for Africa

 
Johannesburg - Walmart's acquisition of South Africa's Massmart Holdings [JSE:MSM] could lead to thousands of job losses and worsening labour conditions, the government will argue at a hearing that starts on Monday.

According to a study commissioned by South Africa's economic development and agricultural departments, about 4 000 jobs could be lost if Massmart shifts 1% of its sales to imports from domestic suppliers.

The report, available on the website of the Competition Tribunal, is one of several statements to be delivered to the tribunal this week as part of a government hearing on Walmart's $2.3bn bid for 51% of the South African retailer.

Walmart's entry into South Africa could also mean worsening working conditions at Massmart, according to the report.

Walmart has said it will honour Massmart's existing contracts with workers.

Competition authorities are the final hurdle for the deal, after shareholders voted overwhelmingly in its favour.

The Competition Tribunal in March delayed the hearings to this week, to allow the government and unions more time to make submissions.

South Africa's trade minister said last week he wanted "concrete commitments" from Walmart not to cut jobs.

South Africa has a history of blocking or imposing conditions on cross-border deals. In 2009 it blocked a $24bn tie-up between MTN and India's Bharti Airtel, citing concern MTN Group [JSE:MTN] could lose its national character.

More recently it allowed Japan's Kansai Paint to take over local paint firm Freeworld Coatings [JSE:FWD], but stipulated Kansai must sell a local unit, build a new plant and preserve jobs to secure the deal.

Walmart, the world's biggest retailer, is aiming to make its largest overseas acquisition since it bought British supermarket chain Asda in 1999.

Some trade unions have threatened to strike against the US company if the acquisition goes through.

walmart  |  massmart holdings  |  retail industry
NEXT ON FIN24X

 
 
 

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
4 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're talking about:

Small Business

A cash flow crunch often occurs in small businesses trying to balance cash coming in with cash going out. Watch this video to help you improve.
 
 

Investing in shares is a marathon

When investment guru Warren Buffet was 11, he bought his first shares and today he reckons that he started too late.

 
 

Start saving...

Time the key for retirement saving
Dummy's guide to saving
Save money with affordable account
All about endowments

Money Clinic

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