SA Competition Tribunal approves Wal-mart deal
The South African Competition Tribunal has approved Wal-Mart's takeover of local chain Massmart, based on the conditions of a supplier development fund and no merger-related retrenchments in the next two years.
In a release Wal-Mart announced the supplier development fund would be worth ZAR100 million (US$14.45 million), while for the next three years the parties involved would have to acknowledge the South Africa Commercial, Catering and Allied Workers Union (SACCAWU).
Massmart CEO Grant Pattison and Wal-Mart International CEO Doug McMillon welcomed the Competition Tribunal's decision, with 50% food business growth expected for Massmart in the next five years.
"The Massmart management team welcomes the prospect of becoming part of the Walmart family and we will now advance our strategy to ensure that our financial base is geared to accelerate growth through the opening of additional locations, which will provide more jobs and also career opportunities for our existing team, while bringing more outstanding products with lower prices to our customers," said Pattison.
"We’re pleased that the competition authorities have recognised the benefits that our investment in Massmart can deliver. We look forward to creating new jobs in South Africa, support for the development of South African exports, and providing previously underserved customers and communities with better prices and increased access to the products they want and need," said McMillon.
Massmart has operations and subsidiaries in 14 African countries.
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