Arab Today, arab today safrican court clears walmart takeover
Last Updated : GMT 13:11:28
Arab Today, arab today
Arab Today, arab today

S.African court clears Wal-Mart takeover

Arab Today, arab today

Arab Today, arab today S.African court clears Wal-Mart takeover

Cape Town - AFP

A South African court Friday cleared the way for the world\'s top retailer Wal-Mart to take its first foothold in Africa by dismissing a government bid to set aside its $2.2 billion takeover of local chain Massmart. The case is seen as a bellwether for foreign investment in South Africa, which is trying to attract major injections of cash into everything from railways to power plants. \"The arguments of the ministers do not justify the setting aside of the (competition) tribunal decision,\" said Judge Dennis Davis. The court ruled against an application by three government ministers seeking to review and set aside the deal approved in May for Wal-Mart\'s 16.5 billion rand (1.7-million euros) purchase of a 51-percent stake in Massmart. However, it ordered that a study be done within three months to investigate how small and medium-sized businesses could participate in Wal-Mart\'s global supply chain and ensure they reap benefits from the merger. The government welcomed the ruling and denied that their challenge would scare off would-be investors in Africa\'s largest economy, saying the state had to ensure local benefit from the entry of the game-changing global giant. \"One of the red herrings that has been thrown around about this particular process has been about whether this is a generalised statement on foreign direct investment,\" said Trade and Industry Minister Rob Davies, one of the three ministers who challenged the deal. \"It\'s not correct and misleading to make those big leaps -- to say... we are negative about foreign investment. Not at all.\" The court acknowledged legitimate concerns about the impact of the merger, with the state fearing local suppliers and jobs will be hit by the US giant\'s global buying power. But it said South Africans will benefit from lower prices which could boost more jobs than potential losses from the merger. \"There was insufficient evidence to conclude that the deterimental effects of the merger would outweigh the clear benefits,\" stated a summary of the ruling. Massmart executive Brian Leroni told reporters that the companies looked forward to working with the government and labour in developing local suppliers. \"Massmart and Wal-Mart welcome the decision that has been handed down,\" he said. The Competition Appeal Court of South Africa partly upheld an appeal of the deal from a trade union, and put in place conditions on the merger decision. These included a two-year ban on job losses, ruling in favour of a union with the reinstatement of 503 retrenched employees. The merging parties have agreed to a 100-million-rand fund to develop local suppliers but the court found that there was not enough detail on how this would work and if it would fulfil required protections for the public interest. With the new study, \"the court will then be empowered to formulate the mandate and the conditions by which such a fund or similar proposal would operate,\" the summary said. Despite losing the bid, Economic Development Minister Ebrahim Patel praised the study for local suppliers, saying it was \"an excellent route\" by the court, and that the court had acknowledged the state\'s chief concerns. South Africa\'s powerful trade unions have sharply criticised the deal, saying Wal-Mart\'s entry would hurt local manufacturers by increasing imports. Massmart runs nine wholesale and retail chains with 288 stores in 14 African countries.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today safrican court clears walmart takeover Arab Today, arab today safrican court clears walmart takeover

 



Arab Today, arab today
Arab Today, arab today Fadi explains secrets of  Nancy Ajram's newlook

GMT 18:23 2017 Friday ,24 February

Fadi explains secrets of  Nancy Ajram's newlook
Arab Today, arab today Tourist guide explains types of tourism

GMT 18:28 2017 Saturday ,25 February

Tourist guide explains types of tourism
Arab Today, arab today Expresses Algerian history by woody figures

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures
Arab Today, arab today Iran complying with nuclear deal

GMT 07:14 2017 Saturday ,25 February

Iran complying with nuclear deal
Arab Today, arab today Ayat Abaza says state TV presented major stars

GMT 03:52 2017 Sunday ,26 February

Ayat Abaza says state TV presented major stars

GMT 14:44 2017 Saturday ,25 February

China overtakes US as Germany’s top trade partner

GMT 05:53 2017 Saturday ,25 February

Global sovereign debt to hit new all-time high

GMT 05:17 2017 Saturday ,25 February

Oil world cautious on Trump’s next move

GMT 09:59 2017 Friday ,24 February

Baidu revenue slips anew amid ad clampdown

GMT 05:20 2017 Thursday ,23 February

WTO ratifies first multilateral trade deal
View News in Arabic - Business: نفط وبتروكيماويات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Reading therapy relieves mental disorders

GMT 15:39 2017 Friday ,24 February

Reading therapy relieves mental disorders
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Penguins in the age of dinos

GMT 11:44 2017 Saturday ,25 February

Penguins in the age of dinos
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today 'Constructive' Vauxhall talk with union

GMT 08:54 2017 Saturday ,25 February

'Constructive' Vauxhall talk with union
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Ola Ghanem hopes to work with M.Ramadan

GMT 07:23 2017 Friday ,24 February

Ola Ghanem hopes to work with M.Ramadan
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage

GMT 06:08 2017 Thursday ,23 February

Actress Lobna Abdel Aziz proud of her career

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives heritage in jewelries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 20:33 2017 Friday ,17 February

To release new antiques collection

GMT 10:20 2017 Thursday ,23 February

Brazil's top diplomat resigns

GMT 11:54 2017 Thursday ,23 February

Saudis await visitors but will they come?

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 20:02 2017 Tuesday ,21 February

Nohan Seyam designs beautiful accessories
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday