South Africa approves Wal-Mart deal with conditions

 In a much-awaited announcement signaling South Africa's attitude to foreign investment, the country's Competition Tribunal on Tuesday approved U.S. retail giant Walmart's 16 five billion rand ( 2.4 billion U.S. dollar ) bid for a 51 percent stake in South African retailer Massmart.

Crucially, according to Business Day newspaper in Johannesburg, the tribunal ruling does not require the merged entity to commit to South African nearby levels of procurement.

The South African Press Association (SAPA) stated details were not given but full reasons for the tribunal's decision is going to be made public within 20 working days.

Company Day said the decision paves the way for the deal to go ahead, subject to any appeal intervening parties for example South African unions or the South African government might make. Both these parties had argued for nearby procurement conditions to be imposed.

Massmart shareholders in South African approved the deal overwhelmingly in January.

The tribunal accepted the give which Walmart and Massmart created to generate a 100 million rand (14.5 million U.S. dollars) fund to develop local suppliers capable of selling to the merged entity.

"Approval given, with conditions as proposed by merging parties. Customers come first, in Massmart, Walmart and within the Competition Tribunal!" Massmart chief executive Grant Pattison stated in text message soon after the announcement.

The ruling stated the merged businesses can not retrench any staff- -"based on the merged entity's operational requirements in South Africa" -- for two years.

Additionally they ought to honor existing agreements with South African unions.

The merged entity should give priority to 503 workers retrenched last year "when employment opportunities grow to be available", the tribunal said.

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