Massmart is looking to buy a local fresh produce supplier just weeks after its own acquisition by United States retail giant Wal-Mart, Business Day reported on Tuesday, citing a spokesperson.
“Massmart can confirm that an application relating to the potential acquisition of Fruitspot by Massmart was lodged with the Competition Commission today,” Massmart spokesperson Brian Leroni is reported as saying.
Johannesburg-based Fruitspot supplies other retailers, including listed chain Spar, the report said.
Wal-Mart, the world’s largest retailer, finalised a $2.4-billion purchase of 51% of discount retailer Massmart, after winning approval with minimal conditions from South Africa’s competition authorities.
Under the conditions, Massmart must not cut jobs for two years, honour existing labour agreements and work to develop local suppliers. Unions had demanded strict targets on using local manufacturers. – Reuters