Harsher penalties for potential Massmart job losses?

By Bizclik Editor

The South African government is no longer fighting to overturn Walmart’s takeover of Massmart, according to the Department of Trade and Industry Director General Lionel October.

Business Day newspaper today quotes October as saying the government wants the antitrust authority to introduce harsher penalties to both companies if they breach the conditions of the approval.

The R16.5 billion purchase was approved in late June with minimal conditions from the Competition Tribunal.

Reports last week suggested that the government was appealing the tribunal’s decision through fear of job losses and local produce making way for imports.

 

READ MORE FROM THE WDM CONTENT NETWORK

To read the latest edition of African Business Review, click here.

 

But October reportedly stated, “The thrust is not blocking the merger any more. We're more looking at the condition they gave.”

October suggested changing the conditions of the R100m supplier development fund the companies offered to create, which was one stipulation of the deal.

"Let’s look at a condition which says, ‘Let’s accept R100m. If the damage is worse than that, let’s have something that kicks in for the period of, say, five years,” he said.

Share

Featured Articles

SAP creates new EMEA region and announces new President

SAP has announced it has appointed a new President for a newly-created EMEA region, aiming to make the most of the opportunities of cloud and AI technology

How SAP is facilitating continuous business transformation

Technology giant SAP has expanded its portfolio with the acquisition of LeanIX, a leader in enterprise architecture management (EAM) software

Siemens and Microsoft: Driving cross-industry AI adoption

To help businesses achieve increased productivity, Siemens and Microsoft are deepening their partnership by showcasing the benefits of generative AI

Sustainability must become central to corporate strategy

Sustainability

The endless benefits of putting your people first

Leadership & Strategy

Working from anywhere: SAP uncovers secret life of employees

Human Capital