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South Africa's government could use its legal options if unsatisfied with how the conditions of Wal-Mart Stores Inc.'s (WMT) merger with Massmart Holdings Ltd. (MSM.JO) are implemented, as some officials fear the deal could be detrimental to competition and jobs in the country.

"We will meet with Walmart/Massmart to discuss their commitments in the light of the conditions that the [Competition] Tribunal has imposed," Economic Development Minister Ebrahim Patel told parliament Monday.

"Based on the outcome of the study of the conditions and the responses of Walmart/Massmart, we will decide on the next steps to take. Government reserves its legal options at this stage," Patel said.

Wal-Mart is expected to close the merger by the end of the month.

South Africa's Competition Tribunal approved the merger on the condition that Wal-Mart doesn't make any redundancies for two years, honors existing bargaining agreements for three, and sets up a 100 million rand ($14.7 million) fund to train local suppliers to be more competitive and efficient.

Unions and government officials such as Patel are worried that Wal-Mart will increase imports, which will squeeze out local suppliers and lead to job losses

-By Devon Maylie, Dow Jones Newswires; +27 (11) 783 7848; devon.maylie@dowjones.com