| Mon 14 Feb 2011, 13:07 | | THEE - The Competition Commission - Commission submits its recommendation on |
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JSE
THEE
THEE - The Competition Commission - Commission submits its recommendation on
Wal-Mart/Massmart merger to the Tribunal
PRESS RELEASE
14 February 2011
Commission submits its recommendation on Wal-Mart/Massmart merger to the
Tribunal
On Friday, 11 February, the Competition Commission (`the Commission`)
submitted its recommendation on the transaction between Wal-Mart Stores, Inc
("Wal-Mart") and Massmart Holdings Limited ("Massmart") to the Competition
Tribunal ("Tribunal"). Wal-Mart is acquiring a controlling stake in Massmart.
Wal-Mart is USA based company that retails a wide range of products such as
grocery, electronic, furniture and clothing in 15 countries. Massmart is a
wholesaler and a retailer of grocery products, liquor and general merchandise
and is listed on the JSE. The Commission found that the merger does not raise
competition concerns.
Public interest concerns were raised, in terms of section 12A(3) of the
Competition Act, by SACCAWU, SACTWU, FAWU and the Small, Medium and Micro
Enterprise Forum. The concerns relate to Wal-Mart`s record on labour rights
and the effect of its procurement practices on local manufacturers and
suppliers.
With respect to these issues, the merging parties have assured the Commission
that they will honour pre-existing union agreements and abide by South African
labour law; and will source the majority of their products locally. The
Commission notes ongoing discussions between the merging parties and public
interest groups to clarify these commitments, and has informed the Tribunal
that it would have to consider further representation on these issues at its
hearing.
ENDS
For more information:
Oupa Bodibe, Manager: Advocacy & Stakeholder Relations
012394 3267/ 082 563 6970/oupaB@compcom.co.za
Maarten van Hoven, Manager: Mergers & Acquisitions
012 394 3295/083 412 7885/maartenv@compcom.co.za
Date: 14/02/2011 13:07:22 Produced by the JSE SENS Department.
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