Walmart deal gets the nod

Mike Hoxbig

Mike Hoxbig

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Johannesburg - Massmart Holdings [JSE:MSM] shareholders on Monday voted in favour of global retailer Walmart's offer to acquire 51% of the local business.

Nearly 79% of Massmart's shareholders voted to approve Walmart's bid, Massmart's chairperson Mark Lamberti said. He confirmed that 78.55% had approved the deal in the vote held at a shareholders' meeting.

Shareholders voted to accept Walmart's bid to buy 51% of Massmart for R148 a share in a deal worth around R17bn.

Members of the Anti-Walmart Coalition had planned to picket outside the Massmart officers in Sunninghill, Johannesburg while the shareholders' meeting took place. They called off the demonstration at the last minute.

"The demonstration didn't take place as the company threatened disciplinary action as a dispute had not been declared," SA Commercial, Catering and Allied Workers' Union (Saccawu) spokesperson Mike Abrahams told Sapa.

However, members of the Anti-Walmart Coalition attended the meeting.

"They are inside to present our case," Abrahams said just before 11:30.

The Anti-Walmart Coalition includes of various trade unions, including the SA Commercial, Catering and Allied Workers' Union (Saccawu), labour federation Cosatu and civil society organisations.

It opposed the Walmart/Massmart deal because of the negative consequences it sees for Massmart workers, the wholesale and retail sector and its supply chains.

"We hope to show how this deal is not in the interests of the country and the national imperatives of transformation, economic growth, job creation and poverty alleviation," the coalition said in a statement on Sunday.
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http://www.fin24.com/Companies/Retail/Walmart-deal-gets-the-nod-20110117

Good news I hope!
 
[Quattro];5399965 said:
Stupid bad bad bad move!
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Capitalism at work buddy. Don't like it, move to North Korea :P

Members of the union seem pissed because now they can't laze around in their incompetence.
 
Whooo Hooo best news of the day! Cheaper prices and wider selection! :D

All those crying about this... the other retailers had their chance to try and compete. They still have... only it is going to be much, much harder now. You should have tried to be more competitive when you had the chance. Boo Hoo for you.
 
Its interesting that almost 22% said "NO" to the deal. That fair number of unhappy shareholders.

More FDI is always good though...
 
Yes!!! Walmart is gonna step ever so heavily on the shoes of all the unions. They'll have to start selling popcorn at uber cheap prices with all the cool news we'll be getting :D
 
The Anti-Walmart Coalition includes of various trade unions, including the SA Commercial, Catering and Allied Workers' Union (Saccawu), labour federation Cosatu and civil society organisations.

It opposed the Walmart/Massmart deal because of the negative consequences it sees for Massmart workers, the wholesale and retail sector and its supply chains.
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ag go cry me a river willya?
 
where is walmart? i don't see a walmart here? and they already declaring strikes etc. what a joke these unions are.
 
DreamKing said:
I really don't understand why you guys are so happy... :confused:

will you see the prices are going to drop from tomorrow? or very near future? I don't think so.
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even if prices don't drop immediately, I will be happy to just see the newer selection of goods coming in.

Imagine one aisle, both sides dedicated to breakfast cereals alone! :p

Instead of going to buy a weed eater and seeing one brand there, you will now see about six different brands.
 
DreamKing said:
I really don't understand why you guys are so happy... :confused:

will you see the prices are going to drop from tomorrow? or very near future? I don't think so.
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The change will propagate all the way down to the supply chain, meaning that at the very least we will have a wider selection.

In order to increase profits, they should provide decent competition, leading to better prices. The yanks are not going to blow R17bn without trying to recover that as soon as possible.
 
The Anti-Walmart Coalition includes of various trade unions, including the SA Commercial, Catering and Allied Workers' Union (Saccawu), labour federation Cosatu and civil society organisations.
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LOL!

Did anyone else hear the interview with the guy from Saccawu on 702 at 1pm ? The guy is a mumbling moron and when asked for reasons why the unions oppose this deal, he gave some excuse of its not only Saccawu opposed to the deal, but Cosatu and their allies around the world.

After some more pressing from the interviewer, the union finally gave the real reason they are unhappy. "Wallmart is known to be the most anti-union company in the world"

Personally I am very happy that this deal is going through.
 
Wow you people are short sighted: first what makes you think prices will drop? Why take over a company to see prices and profits fall? Is vodacom cheaper, is absa? And the unions are quite right, you would feel otherwise if you worked there because they won't be hiring new people for a long time, so they will reduce the workforce. The net effect? Money that would remain in South African hands will enrich the American economy and fewer jobs for South africans. This is a very, very bad thing, hopefully the government blocks it.
 
They come in and shut down the smaller okes. They come in with low pricing nobody can touch em. They actually hit the road running with massive losses.

Pricing is going to be insane when they first launch, selling things at below cost!!!!!!

Cannot wait!!!!!
 
DigitalSoldier said:
The guy is a mumbling moron and when asked for reasons why the unions oppose this deal, he gave some excuse of its not only Saccawu opposed to the deal, but Cosatu and their allies around the world.
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Did he mention the dark forces :)

I"m happy its going through - will eventually make all these other places that are currently ripping us off drop their prices.
 
oronte said:
Wow you people are short sighted: first what makes you think prices will drop? Why take over a company to see prices and profits fall? Is vodacom cheaper, is absa? And the unions are quite right, you would feel otherwise if you worked there because they won't be hiring new people for a long time, so they will reduce the workforce. The net effect? Money that would remain in South African hands will enrich the American economy and fewer jobs for South africans. This is a very, very bad thing, hopefully the government blocks it.
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Ermm, that's their business model :/

http://en.wikipedia.org/wiki/Wal-Mart

I don't care if they won't be hiring new employees for a long time. Existing employees need to know that they are replaceable, and must therefore start performing to keep their jobs. For far too long has this country been held to ransom by the unions and incompetent employees with a sense of entitlement.

How is a reduced workforce always a bad thing? Do you really need to employ 10 people to stamp your receipt upon leaving a store? Would you do that if it was your own money?

It's not up to the private sector to ensure high employment rates. Political parties made such promises during their election campaigns, and they must therefore be the ones responsible for it.
 
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