Wal-Mart Completes Massmart Acquisition, Makes Board Changes
June 20 2011 - 10:32AM
Dow Jones News
Wal-Mart Stores Inc. (WMT) has completed its $2.4 billion
acquisition of a 51% stake in Massmart Holdings Ltd. (MSM.JO) and
announced a new board at the South African retailer, Massmart said
Monday.
The board changes will take affect Monday.
South Africa's Competition Tribunal approved the merger last
month subject to Wal-Mart and Massmart agreeing to make no job cuts
for the first two years following the merger, to respect union
bargaining agreements for three years, to give preferential hiring
to the 503 workers laid off in 2010 before the merger was
announced, and to establishing a 100 million rand ($14.7 million)
fund to help train local suppliers to be more competitive
globally.
The new board will comprise nine directors: four independent
non-executive directors, three non-executive directors and two
executive directors.
Wal-Mart was entitled to nominate the chairman and three
non-executive directors to the board. The world's biggest retailer
nominated the chief executive of Wal-Mart International, Doug
McMillon, and executives Jeffery Davis and JP Suarez.
Mark Lamberti will remain chairman.
-By Devon Maylie, Dow Jones Newswires; +27 (11) 783 7848;
devon.maylie@dowjones.com