South African competition authorities approved Wal-Mart's (WMT.N) $2.4 billion bid for Massmart (MSMJ.J) on Tuesday, saying the retailer must not fire workers for two years. The conditions imposed on the deal -- including a programme for developing local suppliers -- will likely be seen as a win for the world's largest retailer, which said it would walk away from the deal if targets were put on local procurement. The deal is seen as a test case for major foreign investment in South Africa. Home to the continent's deepest capital markets, South Africa is also a country where unions hold enormous political influence. Three government departments and the unions had lined up against the deal, asking the tribunal to impose targets on local procurement and a freeze on job cuts. The government and unions are concerned about Wal-Mart's global supply network which, they say, could lead to a flood of cheap imports, sparking job losses and squeeze local suppliers.
Wal-Mart Stores, Inc. (Walmart) operates retail stores. Shares of WMT remained unchanged at $54.7. In the past year, the shares have traded as low as $47.77 and as high as $57.90. On average, 10342800 shares of WMT exchange hands on a given day and today's volume is recorded at 0.
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