Concerns over Walmart's acquisition of Massmart

By Lelethu Mquqo
10 May 2011

The Competition Tribunal is this week hearing arguments from government that Walmart's acquisition of South Africa's Massmart Holding could lead to thousands of job losses and worsening labour conditions.

WalMart Stores, the world's biggest retailer, has won approval from Massmart shareholders for its 16-and-a-half-billion-Rands offer for 51% of Massmart.

Unions are opposed to the move after a study commissioned by South Africa's economic development and agricultural departments showed that about four-thousand jobs could be lost if Massmart shifts one-percent of its sales to imports from domestic suppliers.

Meanwhile, an American trade union consulting with the South African Commercial, Catering and Allied Workers Union says it agrees with their concerns about the Walmart-Massmart deal.