Opponents attack Massmart merger plans

Advocate Paul Kennedy, representing the unions, questioned Pattison over retrenchments that took place in 2009 in Nelspruit. He argued that Massmart had retrenched staff to make the company more attractive as an acquisition to Wal-Mart. Pattison denied this. Advocate Rafik Bhana, representing the Department of Trade and Industry and the Department of Agriculture, Forestry and Fisheries, argued that Pattison stood to gain a huge sum of money in his personal capacity if the merger went ahead. Pattison conceded he owned more than 2m shares and options in Massmart. Given that the offer from Wal-Mart stood at R148 a share, this would put the value of his shares at about R300m. He also acknowledged that he would be a 'prime candidate' to benefit from additional share allocations should the merger take place. The hearing follows the Competition Commission's recommendation to the tribunal, in February, that the R16,5bn merger be approved without conditions. Full Mail & Guardian Online report

Yesterday illustrated how far the company remained from the government and unions that want post-takeover commitments to preserve jobs and procure locally, according to a Business Day report. It says Pattison's detailed answers frustrated advocates determined to discover that his company wanted to gut local manufacturing. 'You and Wal-Mart are trying to pull the wool over the Competition Tribunal's eyes,' Rafik Bhana SC, for the Departments of Economic Development, Trade and Industry, and Agriculture, Forestry and Fisheries, accused Pattison after one of many altercations. The report notes that while the acquisition presents little issue from a competition law point of view, the tribunal is bound to take public interest considerations - in particular, jobs - into account. Full Business Day report

The acquisition could lead to thousands of job losses and worsening labour conditions, the government will argue, notes a Fin24.com report. According to a study commissioned by SA's economic development and agricultural departments, about 4 000 jobs could be lost if Massmart shifts 1% of its sales to imports from domestic suppliers. The report, available on the website of the Competition Tribunal, is one of several statements to be delivered to the tribunal this week. Full Fin24.com report