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

From Jun 2019 to Jun 2024

The competition hearing for Wal-Mart Stores Inc.'s (WMT) proposed $2.4 billion offer to buy a controlling stake in African retailer Massmart Holdings Ltd. (MSM.JO) will resume Monday following the submission of government comments, the South African Competition Tribunal said Thursday.

The hearing was originally scheduled to run in March but was delayed due to the government's late submission of comments.

The hearing is the final step toward completion of the deal, which would represent Wal-Mart's first entry into Africa. The deal is facing resistance from unions worried about the decline of local business and industry competition.

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 and in February the South African Competition Commission recommended approval of Wal-Mart's proposed offer.

The Tribunal said it expects to hear comments from the Competition Commission, the merging parties, government departments and other third parties during next week's hearing.

"After considering these views, the Tribunal must decide whether to approve the merger, approve the merger with conditions or whether to prohibit the merger outright," the Tribunal said.

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