South Africa’s intervention in Walmart’s bid for control of Massmart was “aggressive” and could have been handled better, Massmart’s chief executive told the Business Report newspaper on Tuesday.
South Africa’s competition authorities last month approved Walmart’s $2.4-billion offer for 51% of Massmart, a discount retailer, with minimal conditions on the deal.
Three government departments — economic development, trade and industry and forestry and fisheries — opposed the transaction and have said they may consider appealing the decision.
In an interview with the daily Business Report newspaper, Massmart chief executive Grant Pattison singled out the government’s role in the transaction.
“I was surprised by the department of economic development’s aggressive intervention and I think that was not handled as well as it could have been,” he told the newspaper.
“In context, everything else was absolutely fine.”
The government and South Africa’s powerful unions argued that Walmart’s global supply chain would lead to a flood of cheap Asian imports, putting pressure on local manufacturers and sparking job cuts.
Regulators imposed a two-year freeze on job cuts, but did not require the local procurement targets government and unions had pressed for.
The government departments have said they will decide on appeal after studying whether or not the conditions are sufficient to prevent widespread job losses.
Separately, Namibia’s trade and industry minister has said he will work together with South African counterparts to fight his country’s approval of the transaction, the Namibian newspaper reported on Tuesday.
Massmart has several stores in Namibia, where a court ruled this month Walmart could go ahead with its transaction even as a regulatory appeal against the deal was still pending. — Reuters