South Africa's Competition Appeal Court has dismissed an application by the government's trade and agriculture ministries to effectively delay approval of a proposed merger between US retail giant Walmart and South African retail group Massmart.
Judge Dennis Davis said a lack of evidence that the merger would adversely affect small and medium-sized businesses meant that the court could not delay the merger.
The R16,5bn (€1.65bn) deal, which is set to give Walmart a 51 per cent stake in Massmart, has raised concerns among workers that the arrival of the US retailer in Africa could lead to a loss of jobs.
However, Judge Davis said: 'The evidence indicated that consumers will benefit from lower prices and that these lower prices may, in turn, generate greater job creation than the job losses that may result from the merger.'
The court also ordered an investigation into a proposed R100m (€10m) development programme for small and medium-sized suppliers, which is to be set up as a condition of the merger's approval.
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