COMPETITION COMMISSION RECOMMENDS UNCONDITIONAL APPROVAL OF WAL-MART TRANSACTION
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Massmart and Wal-Mart have been notified that the Competition Commission has concluded its investigation and has referred Wal-Mart’s proposed acquisition of 51% of Massmart’s equity to the Competition Tribunal with a recommendation that the transaction be approved without conditions.
The next step in the approval process is the Competition Tribunal hearing, followed by its ruling on the transaction. Commenting on the anticipated timing of a ruling by the Tribunal, Massmart CEO Grant Pattison said “It is difficult to predict exact timing as this is largely dependent on the availability of suitable dates on the Tribunal’s roll.”
Pattison also added that Massmart was engaged in ongoing discussions with SACCAWU as part of its effort to respond to the union’s concerns related to the transaction.
Walmart International CEO Doug McMillon commented: “While the remaining conditions to this transaction must be approved and accepted, specifically the deliberation and decision by the Competition Tribunal, we are delighted that the Commission has recognised the inherent benefits in this proposed transaction for South African consumers, suppliers, associates/employees and all other stakeholders. We now look forward to constructive participation within the Tribunal process to enable a final decision to be made.”