South African tribunal okays Walmart deal

08:37, June 01, 2011      

Email | Print | Subscribe | Comments | Forum 

In a much-awaited announcement signaling South Africa's attitude to foreign investment, the country's Competition Tribunal on Tuesday approved U.S. retail giant Walmart's 16 5 billion rand ( 2.4 billion U.S. dollar ) bid for a 51 percent stake in South African retailer Massmart.

Crucially, according to Business Day newspaper in Johannesburg, the tribunal ruling does not require the merged entity to commit to South African local levels of procurement.

The South African Press Association (SAPA) said details were not given but full reasons for the tribunal's decision will be made public within 20 working days.

Business Day said the decision paves the way for the deal to go ahead, subject to any appeal intervening parties such as South African unions or the South African government may make. Both these parties had argued for local procurement conditions to be imposed.

Massmart shareholders in South African approved the deal overwhelmingly in January.

The tribunal accepted the offer which Walmart and Massmart made to create a 100 million rand (14.5 million U.S. dollars) fund to develop local suppliers capable of selling to the merged entity.

"Approval given, with conditions as proposed by merging parties. Customers come first, in Massmart, Walmart and in the Competition Tribunal!" Massmart chief executive Grant Pattison said in text message after the announcement.

The ruling said the merged companies cannot retrench any staff- -"based on the merged entity's operational requirements in South Africa" -- for two years.

In addition they must honor existing agreements with South African unions.

The merged entity must give priority to 503 workers retrenched last year "when employment opportunities become available", the tribunal said.

Source: Xinhua
Wen Jiabao attends trilateral leaders' meeting of China,Japan and ROK
The Third China-U.S.Strategic and Economic Dialogue
  Weekly review  
May 27   Kim calls for close ties through generations
May 23   China intends to enhance friendship with Japan
May 23   Expert: Ecological problems not all due to Three Gorges Dam
May 24   Top military official's visit promotes China-US military ties
May 28   The week in pictures
May 25   'China fever' sweeps US tourism industry
May 26   US should not monopolize cyber affairs
May 26   Salty tide hits Shanghai as drought lingers
May 25   A new chapter for China-South Africa cooperation
May 27   Military trusted most of all Chinese institutions


  • Do you have anything to say?


Special Coverage
  • 3rd Anniversary Of Wenchuan Earthquake
  • Third China-U.S. Strategic and Economic Dialogue
Major headlines
Editor's Pick
  • Chinese central gov't vows to take lead in eliminating wasteful practices
  • Berlusconi suffers crushing local election defeats
  • Bus carrying wedding party plunges into pond in India, 37 drowned
  • Private Chinese enterprises search for talent abroad
  • India, Germany sign four pacts
  • For Premier, love for basketball never grows old
Hot Forum Dicussion