Business
South Africa: Walmart takeover of Massmart approved by court
Friday, March 9, 2012
Despite losing the case, Economic Development Minister Ebrahim Patel praised the study for local suppliers, saying it was “an excellent route” by the court, and that the court had acknowledged the state’s chief concerns.
South Africa’s powerful trade unions have sharply criticised the deal, saying Walmart’s entry would hurt local manufacturers by increasing imports.
Walmart is entering South Africa’s pro-worker labor environment, where unions regularly embark on mass action strikes, with a reputation as being anti-union.
The court has ordered it to honor existing labour agreements for at least three years.
Massmart runs nine wholesale and retail chains with 288 stores in 14 African countries.
Copyright 2012 AFP.
Continue Reading