S Africa Government To Request Tribunal Delays Wal-Mart Hearing
March 21 2011 - 1:28PM
Dow Jones News
South Africa's Economic Development Department will Tuesday
request that the country's Competition Tribunal postpone the start
of the hearing to decide on Wal-Mart Stores Inc.'s (WMT) proposed
$2.4 billion offer for a controlling stake in African retailer
Massmart Holdings Ltd. (MSM.JO), unions said Monday.
The tribunal is scheduled to hold the hearing from Tuesday to
Friday, when the two retailers, unions and other interested parties
will present evidence and testimony.
The United Food and Commercial Workers International Union said
the government will submit an application first thing Tuesday
asking for the hearing start date to be delayed so the government
has time to put together its issues with the merger.
The UFCW said the tribunal will likely decide what to do before
proceeding.
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 and in February the South African Competition Commission
recommended approval of Wal-Mart's proposed offer.
The Economic Development Department was late in sending its
views to the commission.
Labor unions plan to present their case against the deal at the
upcoming hearing. They are concerned that Wal-Mart's entry into
South Africa will limit local food firms' ability to compete,
leading to job losses and the demise of local industry.
The merger would be Wal-Mart's first step into Africa.
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