The Competition Tribunal has approved Shoprite's acquisition of certain Massmart stores. But it wants ten stores identified as "highly problematic" to be sold to parties not related to Shoprite.The Competition Tribunal has approved Shoprite's acquisition of certain Massmart stores with conditions.
The Tribunal announced on Sunday that after a three-day merger hearing and various information requests, it has approved the proposed transaction with certain conditions to address identified competition and public interest concerns, including a conditionn that Massmart divest from ten stores identified as"highly problematic".
So, the Commission recommended franchising of the four of those highly problematic stores and a funding package to facilitate competition from"one existing, high potential, black-controlled independent retail competitor" for the remaining six. However the Tribunal approved the merger on condition that Massmart will divest from all ten stores.
Until those buyers are found, Massmart must preserve and maintain the economic and competitive edge of those stores by providing the necessary funding to keep them trading and extending any supply and lease arrangements they have with it.The Tribunal has provided for the appointment of a Trustee to monitor Massmart's compliance with this.
_Business When the competition tribunal make demands like this,be assured this whole venture is dead in the water. Massmart has sold it because they're losing money. How the hell is anybody going to turn that around. Globally mass retailers are closing down stores. Invest at your peril!
_Business MaanoMadima sizoyithola kahle kuwe as usual.
_Business So Shoprite takes all the profitable stores and leaves the struggling ones to fend for themselves. The competition commission should do it the other way around.
_Business Why must 10 highly problematic stores be sold to black retailers. It seems like they will be setup to fail!