Massmart war talk 'sinister'

Massmart subsidiary Masscash was last month granted permission by the Competition Commission to buy Port Elizabeth wholesaler Finro.

Lamberti had recommended that the Massmart board consider establishing a "fighting fund" to "take out competitors". He said of a Massmart rival: "We have to force them into a position where they make no money.

"We cannot allow our competitors to flourish."

Lamberti's remarks were contained in minutes of board meetings that were part of the evidence considered by the competition authorities in the probe into the proposed acquisition of Finro by Masscash.

The commission first wanted to ban the deal but then approved it. This week it released its reasons for granting the approval.

Recently appointed tribunal member Andre Wessels said there was insufficient economic or other evidence that the deal would result in higher prices, or other adverse affects, to the spaza shops, small superettes and independent convenience stores in the Port Elizabeth area.

Wessels dismissed the possibility that Massmart might use the Finro acquisition to promote a predatory strategy that would raise barriers to entry in the Port Elizabeth market.

Source: The Herald

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