Walmart Wins Court OK for South African Acquisition (WMT)
Retailing giant Wal-Mart Stores Inc. (NYSE: WMT) has won approval from a South African appeals court for its takeover of the country’s Massmart. The $2.4 billion deal was approved by the country’s regulators nearly a year ago, but both the…
Retailing giant Wal-Mart Stores Inc. (NYSE: WMT) has won approval from a South African appeals court for its takeover of the country’s Massmart. The $2.4 billion deal was approved by the country’s regulators nearly a year ago, but both the service workers union and the government filed appeals contesting the decision.
Walmart originally tried buy all the company’s stock, but that offer was rejected and the US firm had to settle for 51% ownership.
The appeal centered on procedural issues and the firing of about 500 union employees. The appeals court ruled that the procedural issues were insubstantial, but Walmart was ordered to re-hire the fired workers.
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Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.
