Massmart is of the view that given walmarts collective skills and capabilities, they will enable the merged entity to implement its premerger. View integrated annual report including abridged afs 7. The effectiveness of merger control in south africa. Massmart has been approved with the condition that there can be no mergerrelated retrenchments for.
The committee continued with the second day of hearings into the walmart massmart merger. Walmart stores inc v massmart holdings ltd 73lmdec10 2011. This is because while previous merger assessments have been decided on public interest grounds, these concerns were acknowledged, and recommendations put forward, by the commission. The companies fully appreciate the courts role in seeking to reconcile the potentially complex legal, economic and public interest considerations in. The massmartwalmart merger has now been independently endorsed by all three arms of the competition authority in south africa, being the commission, the tribunal and appeal court. Massmart sells in 14 african countries, but the majority of its operations are in south africa 265 retail stores in south africa versus 25 in the other countries2. Massmart walmart welcome the decision handed down by the competition appeal court to approve the merger and, we are keen to work with interested parties to develop local suppliers and producers. The walmartmassmart merger and the ensuing proceedings before the south african competition authorities and court system provide a highprofile example of. The purpose of the report is to respond to allegations made by various complainants about the impact of the proposed acquisition by walmart of a 51% stake in massmart. Further, south african competition law also makes provision for merger. Walmart has tried to allay fears by promising hundreds of new stores and thousands of new jobs, as well as announcing a planned 50% increase in massmarts food business. Increased focus on public interest considerations in south. The competition authorities in south africa are wellknown for imposing diverse and interventionist conditions on merger transactions which have an impact on the public interest in south africa.
The walmart massmart merger provides a suitable case study in which to assess the potential interaction between competition law and industrial policy. Section 2 describes the complaints that have been made about the proposed transaction sub. Competition appeal court approves massmartwalmart merger. In order to align the group better with walmart stores, inc. Massmart holdings is a managed portfolio of nine wholesale and retail chains, and one buying group, each focused on highvolume, lowmargin, lowcost distribution of mainly branded consumer goods for cash. For the full text of the cautionary announcement referred to in the above release, please click on this link. A meeting of the economic development committee held on 20 july 2011, lead by ms e coleman anc. Competition tribunals decision on the walmartmassmart merger. The group operates in 14 countries in subsaharan africa through four divisions comprising 288 stores. Massmart is a managed portfolio of four divisions, each focused on highvolume, lowmargin, lowcost distribution of mainly branded consumer goods for cash, through 412 stores in countries in subsaharan africa. Massmart will continue to trade on the jse limited to provide massmart shareholders with the ability to participate in the growth. The rigorous process that has been followed has served the useful purpose of allowing all participants opportunity to develop a better understanding of each others expectations, creating a platform for partnerships that benefit south african consumers and local suppliers. Merger remedies and the walmartmassmart case econex. The walmartmassmart merger provides a suitable case study in which to assess the potential interaction between competition law and industrial policy.