S.Africa approves Wal-Mart with token conditions

JOHANNESBURG, May 31 – South Africa approved Wal-Mart’s $2.4 billion bid for control of retailer Massmart with minimal conditions on Tuesday, giving the world’s top retailer a big boost in its plan to expand in fast-growing Africa.

South Africa’s Competition Tribunal told Wal-Mart not to cut jobs for two years, honour existing labour agreements and work to develop local suppliers, concessions the U.S. firm had earlier proposed itself.

The deal gives Wal-Mart a 51 percent stake of Massmart, a discount retailer that sells everything from liquor to televisions and has a presence in at least a dozen African countries.

 

Source: newsletter Reuters Africa

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