Court throws out government appeal - Wal-Mart wins final go-ahead in Massmart deal - Rules that 503 workers must be rehired
Wal-Mart wins final go-ahead in Massmart deal
A South African court on Friday largely dismissed an appeal from government and unions to roll back approval for Wal-Mart’s $2,4 billion acquisition of Massmart, ending months of speculation about the future of the deal.
The Competition Appeal Court ruled against the government’s request to have the deal set aside, although it did rule that about 500 previously fired workers should be reinstated.
The ruling is likely to be seen as a victory for Wal-Mart Stores Inc in its plans to expand in fast-growing Africa. It also likely to soothe local investors, who had feared the ruling would tarnish South Africa’s reputation as a business-friendly country.
South Africa’s anti-trust regulator in May approved Wal-Mart’s bid for 51% of discounter Massmart Holdings with token conditions. That prompted the government and the main service workers union SACCAWU to launch separate appeals.
The state’s appeal centred on procedural issues during the anti-trust hearing in May. The union had argued the original conditions did not adequately address concerns about job losses.
Win for Wal-Mart
Court throws out government appeal - Wal-Mart wins final go-ahead in Massmart deal - Rules that 503 workers must be rehired
Wal-Mart wins final go-ahead in Massmart deal
A South African court on Friday largely dismissed an appeal from government and unions to roll back approval for Wal-Mart’s $2,4 billion acquisition of Massmart, ending months of speculation about the future of the deal.
The Competition Appeal Court ruled against the government’s request to have the deal set aside, although it did rule that about 500 previously fired workers should be reinstated.
The ruling is likely to be seen as a victory for Wal-Mart Stores Inc in its plans to expand in fast-growing Africa. It also likely to soothe local investors, who had feared the ruling would tarnish South Africa’s reputation as a business-friendly country.
South Africa’s anti-trust regulator in May approved Wal-Mart’s bid for 51% of discounter Massmart Holdings with token conditions. That prompted the government and the main service workers union SACCAWU to launch separate appeals.
The state’s appeal centred on procedural issues during the anti-trust hearing in May. The union had argued the original conditions did not adequately address concerns about job losses.
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