Massmart circles The Fruitspot

Massmart wants to take over fruit and vegetable supplier The Fruitspot, Massmart spokesman Brian Leroni said.

"We have submitted an application to the Competition Commission in relation to a 100% acquisition of The Fruitspot," Leroni said.

"The acquisition is consistent with our strategy of increasing Massmart's fresh fruit and vegetables proposition to customers."

If the transaction is approved, The Fruitspot will be housed in Walmart-controlled Massmart's Masswarehouse division, Leroni said. He declined to put a value on the deal.

Walmart, the world's biggest retailer, finalised the $2.4-billion purchase of 51% of discount retailer Massmart in June after winning approval with minimal conditions from the competition authorities.

The conditions prohibit Massmart from cutting jobs for two years, it must honour labour agreements and it must contribute to the development of its local suppliers.

Unions demanded strict targets on using local manufacturers.

Leroni said the bid had nothing to do with the Competition Tribunal conditions.

The Fruitspot supplies other retailers, including listed chain Spar.

Massmart's shares are weaker, having shed 0.6% at 8.53am yesterday after sinking as low as 2.3%.