Massmart (PK) (USOTC:MMRTY)
Historical Stock Chart

From Jun 2019 to Jun 2024

African retailer Massmart Holdings Ltd. (MSM.JO) said Thursday it expects to know by April what the competition tribunal is planning regarding Wal-Mart Stores Inc.'s (WMT) proposed $2.4 billion offer to buy a controlling stake in the company.

"We should know in April where we stand with the competition tribunal regarding Wal-Mart," the company said.

A competition tribunal hearing is set for March 22 to 24.

Earlier this month, the South African competition commission recommended approval of Wal-Mart's proposed offer.

In January, Massmart said almost 98% of its shareholders voted in favor of the deal to sell a 51% stake to Wal-Mart at 148 rand a share. The transaction needed the support of at least 75% of Massmart shareholders.

Massmart operates several wholesale and retail chains, including Game general merchandise stores, Builders Warehouse for construction and Makro warehouse-club stores. The bulk of the company's 288 stores are in South Africa, although Massmart also operates in 13 other sub-Saharan countries.

Massmart said if the Wal-Mart deal goes ahead the African retailer will incur a 194 million rand advisor fee cash cost and a 119 million rand IFRS charge in the full year 2011.

The retailer said it continues to hold discussions with the South African Commercial, Catering and Allied Workers Union to respond to union concerns.

The two retailers previously said they will continue to honor all existing union agreements and South African labor law if the deal goes ahead. Massmart said Saccawu represents 41% of its employees.

Labor unions plan to present their case against the deal at the upcoming hearing. Unions are concerned that Wal-Mart's entry into South Africa will limit local manufacturers and food processors from being able to compete, leading to job losses and the demise of local industry.

-By Devon Maylie, Dow Jones Newswires; +44 (20) 7842 9483; devon.maylie@dowjones.com