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Published
Mar 28, 2011
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Wal-Mart challenges Namibia competition watchdog

By
Reuters
Published
Mar 28, 2011

Mar 28 - Wal-Mart Stores Inc is taking Namibia's competition watchdog to court for attaching conditions to its bid for control of South African retailer Massmart's operations in that country, the watchdog said.

Wal-Mart

The world's biggest retailer is in the final stages of taking a 51 percent stake in Massmart, which operates in 14 African countries, including Namibia.

"Wal-Mart launched an urgent High Court Application challenging the merger determination issued by the Commission," the Namibian Competition Commission said in a statement dated March 25.

The Commission declined to elaborate on the conditions attached to the deal, and media reports in the southwest African country contained no details.

Wal-Mart is also considering legal options to speed up a probe its $2.3 billion bid for Massmart in South Africa after competition authorities there delayed a hearing by almost two months last week.

South Africa's Competition Tribunal postponed the hearings to May 9-16 after the government asked for more time to submit additional information.

The tribunal is the last obstacle to Wal-Mart taking a 51 percent stake in Massmart after shareholders overwhelmingly voted in favour of the deal in January.

The deal has pitted Wal-Mart, which has long tussled with organised labour in the United States, against South Africa's powerful trade unions, some of which have threatened to strike against the U.S. group.

Wal-Mart, which agreed to pay 148 rand per share for the stake, said Massmart remained a compelling investment that would give it a substantial presence in South Africa and pave the way for further expansion across the continent.

The deal, if it goes ahead, would be Wal-Mart's biggest acquisition since it bought British supermarket chain Asda in 1999.

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