June 29 (Bloomberg) -- Wal-Mart Stores Inc., the world’s biggest retailer, said its acquisition of a 51 percent stake in South Africa’s Massmart Holdings Ltd. isn’t affected by a local labor union’s appeal against the transaction.
The appeal by the South African Catering and Commercial Workers’ Union to South Africa’s Competition Appeal Court has no impact on the deal’s implementation, Wal-Mart and Massmart said today in a joint e-mailed statement.
Court spokeswoman Lerato Motaung confirmed that an appeal notice has been received from the union. SACCAWU, as the union is known, couldn’t immediately be reached for comment when Bloomberg News called its head office in Johannesburg.
The union and the government jointly opposed the acquisition, which has already been approved and implemented, on the grounds that Wal-Mart’s entry into South Africa would threaten local jobs and lead to a surge in imports.
“This is not an unexpected development and the companies remain firm in their belief that the transaction rests on solid legal ground,” Wal-Mart and Massmart said in the statement.
On June 20, Wal-Mart paid 16.5 billion rand ($2.4 billion) to acquire the majority stake in the South African retailer.
--Editors: Paul Jarvis, Jerrold Colten.
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