Wal-Mart, Massmart Takeover Competition Hearing To Resume Monday
May 05 2011 - 5:37AM
Dow Jones News
The competition hearing for Wal-Mart Stores Inc.'s (WMT)
proposed $2.4 billion offer to buy a controlling stake in African
retailer Massmart Holdings Ltd. (MSM.JO) will resume Monday
following the submission of government comments, the South African
Competition Tribunal said Thursday.
The hearing was originally scheduled to run in March but was
delayed due to the government's late submission of comments.
The hearing is the final step toward completion of the deal,
which would represent Wal-Mart's first entry into Africa. The deal
is facing resistance from unions worried about the decline of local
business and industry competition.
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 Tribunal said it expects to hear comments from the
Competition Commission, the merging parties, government departments
and other third parties during next week's hearing.
"After considering these views, the Tribunal must decide whether
to approve the merger, approve the merger with conditions or
whether to prohibit the merger outright," the Tribunal said.
-Devon Maylie, Dow Jones Newswires; +44 (20) 7842 9483;
devon.maylie@dowjones.com