Massmart Says Competition Commission Recommends Wal-Mart Takeover
February 14 2011 - 3:33AM
Dow Jones News
African retailer Massmart Holdings Ltd. (MSM.JO) says the South
African competition commission has recommended approval of Wal-Mart
Stores Inc.'s (WMT) proposed $2.4 billion offer to buy a
controlling stake in the company.
No date has been set for the tribunal hearing, Massmart said
over the weekend.
"It is difficult to predict exact timing as this is largely
dependent on the availability of suitable dates on the Tribunal's
roll," said Massmart Chief Executive Grant Pattison.
In January, Massmart said almost 98% of its shareholders voted
in favor of the deal to sell a 51% stake to Wal-Mart at 148 rand a
share. The transaction needed the support of at least 75% of
Massmart shareholders.
The retailer is also holding discussions with the South African
Commercial, Catering and Allied Workers Union, which has concerns
about the deal.
Massmart operates several wholesale and retail chains, including
Game general-merchandise stores, Builders Warehouse for
construction and Makro warehouse-club stores. The bulk of the
company's 288 stores are in South Africa, although Massmart also
operates in 13 other sub-Saharan countries.
-By Devon Maylie, Dow Jones Newswires; +44 (20) 7842 9483;
devon.maylie@dowjones.com