Wal-Mart/Massmart hearing postponed

"The tribunal will now hear evidence from all the parties from 9 - 13 May and on 16 May it will hear closing arguments in the case," it said.

In yet another "Tuesday of Twists", the Competition Tribunal hearing on the proposed transaction between global retail giant Wal-Mart and South African consumer goods distributor Massmart (MSM) has been postponed.

"This is a merger of enormous importance. We must make the very best decision based on the facts, so very reluctantly we are going to grant the stay of the hearing until 9 May," the tribunal said on Tuesday afternoon.

This comes on the back of heightened concern by unions that a timetable that the tribunal proposed earlier in the day would not allow them to cross-examine witnesses sufficiently, meaning that it would be unfair for them to continue to be part of the hearing.

Merger opposition

The "Anti-Wal-Mart" coalition of the South African Commercial, Catering and Allied Workers Union (Saccawu), consisting of various trade unions, such as the Congress of South African Trade Unions (Cosatu), social movements and other civil society organisations, was in full force on Tuesday, chanting and protesting outside the Department of Trade and Industry throughout the proceedings on Tuesday.

Earlier in the day, Competition Tribunal chairperson Norman Manoim said government departments had until 14 April to submit their witness statements in regards to the proposed Wal-Mart/Massmart transaction, after the Department of Economic Development, Department of Trade and Industry and Department of Agriculture, Forestry and Fisheries requested a postponement of the hearing.

"It was ultimately decided that it was necessary and appropriate for the government to participate more actively in the merger proceedings, something which it could only do if there were to be a postponement or adjournment," the economic development department said in an affidavit.

At the time, the tribunal was adamant that the hearing, which kicked off on Tuesday, would still continue through to Friday as planned.

But the hearing of the mega-deal will take place from 9 - 13 May, with closing arguments being heard on 16 May.

Possibly June

According to Dow Jones Newswires, Christy Hoffman, the deputy general secretary of the UNI union, the worldwide umbrella union representing 20 million workers, said: "We could be looking to June for a final decision."

Retail stalwart Wal-Mart in November made a R16.5 billion cash offer to acquire 51% of Massmart at R148 per Massmart share - a smaller stake than the initial 100% offer in September, but one that will see Massmart retain its listing on the JSE.

The Competition Tribunal hearing follows the Competition Commission's approval that the deal be approved without conditions.

A source that did not want to be named told I-Net Bridge/BusinessLIVE that the postponement was an "unnecessary inconvenience".