Walmart-Massmart Merger Approved
June 3, 2011,
BENTONVILLE, Ark.-The merger of Walmart and South African retailer Massmart has received the approval of the country's Competition Tribunal.
According to a Walmart statement, the combined entity is planning "significant new-store openings," and it's anticipated that the Massmart food business will increase 50 percent over the next five years. Part of the deal includes the setup of a "supplier development fund" of about $15 million, as well as re-employing more than 500 workers who were laid off last year, prior to the announcement of the proposed merger.
Walmart will also provide expertise in logistics, inventory management and forecasting models to help South African suppliers and to reduce the prices of goods for South African consumers.