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THEE - The Competition Commission - Commission submits its recommendation on

Release Date: 14/02/2011 13:07
Code(s): JSE
Wrap Text

THEE - The Competition Commission - Commission submits its recommendation on Wal-Mart/Massmart merger to the Tribunal PRESS RELEASE 14 February 2011 Commission submits its recommendation on Wal-Mart/Massmart merger to the Tribunal On Friday, 11 February, the Competition Commission (`the Commission`) submitted its recommendation on the transaction between Wal-Mart Stores, Inc ("Wal-Mart") and Massmart Holdings Limited ("Massmart") to the Competition Tribunal ("Tribunal"). Wal-Mart is acquiring a controlling stake in Massmart. Wal-Mart is USA based company that retails a wide range of products such as grocery, electronic, furniture and clothing in 15 countries. Massmart is a wholesaler and a retailer of grocery products, liquor and general merchandise and is listed on the JSE. The Commission found that the merger does not raise competition concerns. Public interest concerns were raised, in terms of section 12A(3) of the Competition Act, by SACCAWU, SACTWU, FAWU and the Small, Medium and Micro Enterprise Forum. The concerns relate to Wal-Mart`s record on labour rights and the effect of its procurement practices on local manufacturers and suppliers. With respect to these issues, the merging parties have assured the Commission that they will honour pre-existing union agreements and abide by South African labour law; and will source the majority of their products locally. The Commission notes ongoing discussions between the merging parties and public interest groups to clarify these commitments, and has informed the Tribunal that it would have to consider further representation on these issues at its hearing. ENDS For more information: Oupa Bodibe, Manager: Advocacy & Stakeholder Relations 012394 3267/ 082 563 6970/oupaB@compcom.co.za Maarten van Hoven, Manager: Mergers & Acquisitions 012 394 3295/083 412 7885/maartenv@compcom.co.za Date: 14/02/2011 13:07:22 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.

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