In a media statement released today, the President of the South African Chamber of Commerce and Industry (SACCI) Mr Chose Choeu, said:
The South African Chamber of Commerce and Industry (SACCI) welcomes the decision of the Competition Commission to approve Walmart’s bid to acquire 51% of Massmart, albeit subject to certain conditions. Any disapproval of the deal would have reverberated around the globe and would have discouraged investment in South Africa. The fact that Walmart operates in many countries including Canada, Brazil, China, Chile, Japan and Mexico will provide Massmart with a global footprint that it currently does not have.
The local supplier development condition imposed on the organization will provide South African suppliers with a ready market through the new global footprint. It will be up to local suppliers to make the best of this opportunity and deliver goods and services of standards sufficiently high that will enable them to penetrate the export market.
The increase of 1,7% in the Massmart share price on the announcement bears testimony to the positive reaction of investors.