BUSA welcomes the conclusion of the Walmart acquisition matter

Business Unity South Africa (BUSA) welcomes the decision of the Competition Appeals Court. This decision successfully balances the need to project South Africa as an investor-friendly economy, while simultaneously addressing the concerns around job losses and the role of small and medium suppliers.

It remains essential, if South Africa is to attain its growth and development goals, to make the country a destination of first choice for foreign investment and for such investors to feel welcome.

BUSA also welcomes the finality brought to this matter by the Appeals Court and reiterates its view that the original Competition Tribunal decision was a pragmatic one.

Furthermore, a number of valuable lessons can be derived from the entire process leading up to the Court's decision, including the extent to which the protracted nature of the Walmart negotiations generated unnecessary uncertainty. 

BUSA urges the South African government and its social partners to finalise the rules and regulations affecting all forms of investment and acquisitions. This will provide the certainty and predictability needed for investment to take place. BUSA therefore hopes that the draft National Treasury document on cross-border investment rules will be finalised once the necessary consultation has been completed.

BUSA believes that the potential benefits of this merger should not be underestimated. Walmart's entry is likely to increase competition in the retail sector and play a role in creating the kind of competitive environment envisaged in the New Growth Path. The lower prices resulting from this will be a boon for consumers and will help to reduce inflation.

Statement issued by BUSA, March 9 2012

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