South Africa's Government Fears the Wal-Mart Deal
South Africa's government and other powerful unions of the country fear the impact of Wal-Mart deal on the economy of the nation. The authorities believe that the new deal could lead to job cuts and an overflow of cheap Asian imports.
The deal between Massmart and Wal-Mart was first announces in September but was postponed by the government. The deal has faced strong opposition from South African labor unions and they have threatened to protest if the deal takes place.
Massmart CE, Grant Pattison said that the deal will be a great opportunity for the investors of the country.
Gerhardus Ackerman, Shoprite's Director of Food Buying and Imports, told the Competition Tribunal that if Wal-Mart entered the local market, Shoprite will have no other option than relying on cheap imports to compete.
The Competition Tribunal will take the ultimate decision regarding the deal. On Monday, May 16 it will hear the legal arguments from all the parties and will draw the conclusion. After the hearing, the tribunal will have 10 days to decide if the deal should be approved, with or without conditions.
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