Hearing on Massmart deal postponed

23 March 2011 - 01:10 By I-Net Bridge
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The Competition Tribunal hearing on the proposed transaction between global retail giant Walmart and South African consumer goods distributor Massmart has been postponed.

"This is a merger of enormous importance. We must make the very best decision based on the facts, so very reluctantly we are going to grant the stay of the hearing until May 9," the tribunal said yesterday.

This comes after concern from unions that the timetable proposed by the tribunal would not allow the unions sufficient time to cross-examine witnesses.

The "Anti-Walmart" coalition established by the South African Commercial, Catering and Allied Workers Union - which includes workers in the wholesale and retail sectors and has the backing of trade union federation Cosatu - protested outside the Department of Trade and Industry throughout the proceedings.

Walmart made a R16.5-billion cash offer in November to acquire 51% of Massmart at R148 per Massmart share - a smaller stake than the initial 100% offer in September, but one that will see Massmart retain its listing on the JSE.

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