A PYMNTS Company

Competition Appeal Court approves Massmart acquisition by Wal-Mart, also asks for study and reinstates workers

By  |  March 9, 2012

The Competition Appeal Court has approved Wal-Mart’s acquisition of a 51 percent stake in Massmart. Judge Dennis Davis, writing for the court, found that the deal would create more benefits–in the form of lower prices and job creation–than harm. To ensure such benefits, the court ordered that a study be commissioned by three experts within a month to study the effect of the merger on small suppliers and employment, to be reviewed by the court. The court also determined that the firing of 503 Massmart workers was related to the merger, and that the workers should thus be reinstated.

Full content: Bloomberg

 

Related content: The Sherman Act’s Criminal Extraterritorial Reach: Unresolved Questions Raised By United States v. AU Optronics Corp (Mark Popofsky & Anthony Biagioli, Ropes & Gray)