South Africa’s Massmart shareholders OK Wal-Mart takeover
The US $2.3 billion deal puts Wal-Mart at odds South Africa’s largest labor group, COSATU, which is closely aligned with the nation’s governing party, the African National Congress. The union threatened the “mother of all boycotts,” according to Reuters.
Now that 97% of Massmart shareholders have voted for the deal, it must be approved by South Africa’s Competition Commission, according to the local business website the Financial Mail.
SACCAWU, a labor union affiliated with COSATU and which represents Massmart workers, would be able to present its objections to the commission. Public hearing on the deal could be held in February.
Wal-Mart has said it will respect labor agreements if the deal is approved, the Financial Mail said.