South Africa's competition tribunal today approved Wal-Mart's bid for a 51% stake in local firm Massmart, on condition the US retail giant not lay off any workers for two years.
'We have decided to approve the merger subject to the undertakings made by the parties becoming conditions for the approval,' the tribunal said in a statement.
'The merged entity must ensure that there are no retrenchments, based on the merged entity's operational requirements in South Africa, resulting from the merger for a period of two years,' the statement added.
In January, Wal-Mart signed a $2.5-billion offer for a controlling stake in Massmart, which runs nine wholesale and retail chains with 288 stores in 14 African countries.
The deal raised concerns from South Africa's politically powerful unions over labour practices at the world's largest retailer.
