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Bloomberg reports that the South African government is urging that nation’s Competition Appeal Court to essentially disallow the acquisition by Walmart of 51 percent of Massmart there for the equivalent of $2.4 billion (US).

This is the second legal challenge mounted to an acquisition that closed more than three months ago, with Walmart taking over operational authority at Massmart while at the same time committing $15 million (US) to a supplier development fund and agreeing not to cut any jobs for two years and honor existing labor agreements for three years.

According to the story, “‘The question before court is whether the merger can or cannot be justified on public-interest grounds,’ Wim Trengove, the government’s senior counsel, told the court today. ‘The tribunal erred’ by failing to place the onus on the companies to prove they wouldn’t increase imports and destroy jobs.”
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