Walmart has been given the green light for its proposed $2.4bn merger with South African retailer Massmart, subject to certain conditions.
South Africa’s Competition Tribunal said Walmart and Massmart should continue to recognise the rights of the unions for the next three years; make no retrenchments for the two years following the merger; and provide a $14.5m fund to help the local community.
The deal will give Walmart a 51% stake in Massmart and an entry point into sub-Saharan Africa.
The tribunal did acknowledge there would be some losers in the deal. It said: “Wal-Mart’s proposed entry into areas presently under-served by large retailers may displace certain small businesses and in others, reduce the market share of some of the major retailers. That is an inevitable consequence of the competitive process.”