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Wal-Mart faces Namibia Competition Commission over Massmart takeover

Wal-Mart Stores Inc is taking the Namibia Competition Commission (NCC) to court after the watchdog demanded certain conditions be met before allowing the world's biggest retailer control of South Africa's Massmart’s operations in the country. NAMIBIA COMPETITION COMMISSION
 Wal-Mart faces Namibia Competition Commission over Mass..
 
 
Wal-Mart Stores Inc is taking the Namibia Competition Commission (NCC) to court after the watchdog demanded certain conditions be met before allowing the world's biggest retailer control of South Africa's Massmart’s operations in the country.

NAMIBIA COMPETITION COMMISSION

Wal-mart is in the final stages of purchasing a 51 percent stake in Massmart and its subsidiaries including Game, Makro and Builders Warehouse. However, the NCC attached certain undisclosed conditions to the deal which has led Massmart to pursue legal action.

"Wal-Mart launched an urgent High Court Application challenging the merger determination issued by the Commission," the Namibian Competition Commission said in a statement dated March 25.

Currently Massmart operates in 14 African countries, including Namibia
. However this is the second time Massmart has suffered due to NCC requirements after it stopped pursuing the controlling stake in Pupkewitz Megabuild after the watchdog insisted there had to be a certain level of location participation in the takeover.

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WAL-MART IN SOUTH AFRICA

Wal-Mart is also considering legal action over a $2.3 billion bid for Massmart in South Africa after competition authorities delayed a hearing by almost two months. South Africa's Competition Tribunal postponed the hearings after the government asked for more time to submit additional information including reassurances over job losses and suppliers.

Even though shareholders voted in favour of the deal in January
, Wal-Mart is facing a backlash from trade unions who have threatened to strike against the U.S group. If the deal does go through, it will be Wal-Mart’s biggest acquisition since it took over British supermarket chain Asda in 1999.
 


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