South African regulators allow Wal-Mart deal

South African regulators approve Wal-Marts bid to buy a controlling share of the retail chain Massmart. Photo Remi0o
South African regulators approve Wal-Marts bid to buy a controlling share of the retail chain Massmart. Photo Remi0o

JOHANNESBURG (AP) - South African regulators approved Wal-Mart's 17 billion rand (about $2.4 billion) bid to buy a controlling share of the retail chain Massmart on Tuesday, imposing conditions that the companies themselves had proposed.

Unions and government officials have expressed concerns that the arrival of the world's biggest retailer could hurt jobs and local manufacturing. But Wal-Mart's interest in coming to Africa for the first time can also be seen as a vote of confidence in South Africa's economy and the continent's potential.

Wal-Mart and Massmart had already agreed to take the steps regarding layoffs and union agreements and pledging to spend 100 million rand (about $14 million) over the next three years to help farmers and other South African suppliers gear up to do business with Wal-Mart.

Arkansas-based Wal-Mart operates in Europe, Asia and across the Americas. It has 8,692 stores in 15 countries, among them Brazil, China and India.

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