Wal-Mart is a massive US-based departmental stores chain, whose takeover bid for Massmart, the biggest food and general goods whole-seller in South Africa, was recently approved by the Competition Tribunal in South Africa but this approval was based on certain conditions like no jobs being cut for two years and the company setting up a fund to assist local suppliers and manufacturers.
The South African Government appealed in the Competition Appeal Court against this approval on grounds of public interest. According to Government lawyers, the tribunal erred by not placing the onus on the company to ensure that increased imports do not destroy jobs, as no specific procurement targets have been set, and by failing to look at whether this merger can be justified on public interest grounds.
[This post has been authored by Antara Roy, Student, 5th Year, B.A./B.Sc. LL.B., WBNUJS]
The South African Government appealed in the Competition Appeal Court against this approval on grounds of public interest. According to Government lawyers, the tribunal erred by not placing the onus on the company to ensure that increased imports do not destroy jobs, as no specific procurement targets have been set, and by failing to look at whether this merger can be justified on public interest grounds.
[This post has been authored by Antara Roy, Student, 5th Year, B.A./B.Sc. LL.B., WBNUJS]
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