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A merger between Devland Cash and Carry and Masscash, controlled by Massmart, will save at least 640 jobs, the Competition Court said Wednesday following the approval of the deal.
Black-owned Devland, which operates more than 20 stores nationwide, was given the green light to take over some Masscash-owned stores, on the condition that no workers lose their jobs.
Masscash operates wholesale businesses and retail outlets targeting the lower end of consumer groups, such as Jumbo Cash and Carry, Trident and Shield, while its retail division has Cambridge Food under its banner.
“The Court has imposed the condition that no employee will be laid off as a result of the merger for a period of nine months after the implementation date of the transaction,” the watchdog said in a statement issued Wednesday afternoon.
Devland is owned and controlled by two historically disadvantaged individuals, and the merger will have a “positive effect on promoting greater ownership distribution” in the grocery market.
“The Court has agreed with the Commission’s assessment that the merger is unlikely to lead to a substantial decrease or prevention of competition in any market in South Africa,” the Competition Court added.
In 2011, the US retail giant Walmart bought a 51% stake in Massmart, which owns Game, Makro and Builders Warehouse, among many other major retail chains.
