Walmart appeal dismissed
Government’s application to set aside the Competition Tribunal’s approval of the Walmart-Massmart merger has been dismissed in the Competition Appeal Court.
The Departments of Agriculture, Economic Development and Trade and Industry wanted the merger to be reassessed, saying it could cost thousands of local jobs.
In June 2011, the tribunal allowed the US retail giant to acquire 51 percent of South African retailer Massmart with conditions, which included the promise of job security.
At the same time, the court has upheld in part an appeal by trade union Saccawu, holding in favour of the union that 503 workers who were retrenched – be reinstated.
Saccawu’s Jan Kotze says they’re happy with their win.
“They are automatically reinstated. The court has ruled that,” he said.
Kotze says they are also pleased that the court also ordered a study be commissioned by the parties to find the best means by which South African small and medium sized suppliers could participate in Walmart’s global value chain.