Wal-Mart Stores has secured anti-trust approval for its bid to buy a 51% stake in South African retailer Massmart.

South Africa’s Competition Tribunal today (31 May) waved through Wal-Mart’s US$2.3bn acquisition, although it attached conditions to its decision.

Local trade unions had expressed their opposition to the move and the US retailer had also faced criticism within government circles for not offering binding commitments on issues like procurement, safeguards for small businesses and black economic empowerment.

Two weeks ago, in a bid to subdue the criticism, Wal-Mart and Massmart offered to not cut jobs for two years if the deal was approved.

The Tribunal’s verdict did insist that the retailers make no “retrenchments” for two years after the acquisition. Wal-Mart and Massmart must also honour existing labour agreements for three years and set up a ZAR100m (US$14.6m) fund to help support the development of local suppliers.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.