Court dismisses government application in Wallmart merger

01 Feb 2016 | Admin Author

The Competition Appeal Court has dismissed an application by three government ministers who sought a review of a decision to approve the merger between US giant Wallmart and South Africa's Massmart.

Cape High Court judge, Dennis Davis, also upheld, in part, an appeal by the SA Commercial, Catering and Allied Workers Union.

The court held in favour of Saccawu that 503 workers who had been retrenched were entitled to reinstatement.

Judge Davis ruled that a study should be commissioned by three experts, representing Saccawu, the ministers of economic development, trade and industry and agriculture, forestry and fisheries, and the merging parties.

These experts must be appointed within one month of the order, and will then have a further two months to produce a report for the consideration of the court.

Davis said the experts must also look into the best means by which South African small and medium sized suppliers could participate in Walmart’s global value chain and thereby ensure that benefits from the merger will flow to this important sector of the economy.