South Africa's government could jeopardise Wal-Mart's (WMT.N) $2.4 billion bid for retailer Massmart (MSMJ.J) if it demands local procurement targets, the chief executive of the South African retailer said on Tuesday. Wal-Mart is in the middle of a 16.5 billion rand ($2.4 billion) bid to take 51 percent of Massmart, a deal that has pitted the U.S. retail giant with unions and the South African government. The government has said it is concerned about potential job losses and the squeezing of local suppliers if the acquisition goes through. Massmart Chief Executive Grant Pattison told a hearing that puttting conditions for local procurement on Massmart might put the deal in jeopardy."If Massmart- Wal-Mart tried, or was forced, to do this alone, the likely outcome is that the merged entity will be forced to shed jobs as its competitors gain market share at its expense," he said.
Wal-Mart Stores, Inc. (Walmart) operates retail stores. Shares of WMT remained unchanged at $55.1. In the past year, the shares have traded as low as $47.77 and as high as $57.90. On average, 11717100 shares of WMT exchange hands on a given day and today's volume is recorded at 0.
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