South African government wants delay of Walmart buyout of Massmart

In a big victory for workers and the people of South Africa, three government departments are pressing retail giant Walmart for more information on its plan to buy Massmart to ensure that the deal does not hurt the country’s economic development.
A submission to the country’s Competition Tribunal made by the Department of Economic Development on behalf of itself and the Department of Trade and Industry and the Department of Agriculture, Forestry and Fisheries, requests that a hearing on the deal scheduled for March 22 to 24 be postponed until the companies provide more information.
The move comes after UNI Global Union and the South African Commercial, Catering and Allied Workers Union (SACCAWU) blasted the South African Competition Commission for giving a recommendation to the Tribunal that Walmart should proceed with its purchase of Massmart without conditions.
After the Competition Commission cave in, SACCAWU has observed that any sense of urgency from Massmart has disappeared. SACCAWU are still seeking commitments on a range of issues.
In a letter published in South Africa’s Business Day newspaper after the decision, Jennings said the competition commission “has turned into a toothless tiger in facing the might of Walmart. What else can explain their decision on the Walmart /Massmart deal? They have given the public interest dimension of the share buy up the most superficial of attention.”
The message struck a nerve with the three government departments, who, according to press reports, now want to more information from Walmart and Massmart about labour issues, job losses and the impact on local businesses, including those of local suppliers.
“We are glad the South African government has heard our message and will not let Walmart wreak havoc on the local labour and procurement markets,” said UNI General Secretary Philip Jennings. “After getting the all-clear from the Competition Commission, Walmart executives thought the game was won so we’re glad the government has stepped in to ensure that the company does not steamroll the local economy.”