South Africa's Competition Commission has approved Wal-Mart's US$2.4 billion takeover deal of local retail chain Massmart, deciding the move would not put South African producers at risk, reported website Businessday.co.za.

The commission's manager for mergers and acquisitions Maarten van Hoven said approval for the 51% takeover took time due to the U.S. company's size, the story reported.

"With their buying power they obviously have an ability that South African firms don’t have," he was quoted as saying.

"That might be to the prejudice of South African manufacturers, to which Massmart has been looking for supplies. (But we concluded) those concerns weren’t significant enough for us to justify imposing conditions."

The story said the companies now just have to convince the Competition Tribunal for approval, but dates for hearings are yet to be set.

Photo: Wal-Mart

Source: www.freshfruitportal.com