Namibian authorities approve Wal-Mart/Massmart merger
Yesterday, 5 March 2012, Wal-Mart and Massmart were advised by the Ministry of Trade and Industry in Namibia that the merger has been approved in Namibia subject to three conditions.
The conditions are as follows:
- The Merged Entity shall ensure that there are no retrenchments, based on the Merged Entity's operational requirements in Namibia, resulting from the Transaction, for a period of two years from the effective date of the Transaction.
- The Merged Entity shall honour existing labour agreements and shall continue to recognise representative trade unions in Namibia to represent the bargaining units, for a period of two years from the effective date of the Transaction.
- The Merged Entity shall consult with the Minister of Trade and Industry with regard to the establishment of a programme of activities for domestic supplier development which the Merged Entity shall implement. The Merged Entity shall obtain the approval of the Minister of Trade and Industry for such a programme within 12 months of the date of this determination.
"The proceedings in Namibia have facilitated a better understanding of shared concerns and expectations, all of which provide a sound basis for developing constructive and empathetic partnerships in the future. We look forward to working with the Minister of Trade and Industry to help support and develop domestic suppliers in Namibia," said Massmart CEO Grant Pattison.
