(BusinessDay SA)- After an almost year-long battle in the Namibian courts, the country’s trade and industry minister has confirmed the approval of the transaction between US retail giant Walmart and Massmart , with similar conditions to those approved by the South African Competition Tribunal.

The outcome of a drawn-out process in SA involving an appeal against the tribunal’s conditions, lodged in the Competition Appeal Court by the Commercial, Catering and Allied Workers Union, and a review application by three government departments, is expected on Friday.

The South African government and the union have asked for stricter conditions than the ones approved by the tribunal.

Massmart CEO Grant Pattison said that the proceedings in Namibia had “facilitated a better understanding of shared concerns and expectations”, all of which provided a sound basis for developing “constructive and empathetic partnerships”.

Namibian Trade and Industry Minister Hage Geingob confirmed the Namibian Competition Commission’s approval of the merger but with amended conditions. The original conditions included that Walmart sell stakes to historically disadvantaged communities. There was no sign of this condition after Mr Geingob’s review of the commission’s decision.

The conditions include the assurance there will be no retrenchments for two years, the honouring of all existing labour agreements with the Namibian Food and Allied Workers Union for two years, and consultation with Mr Geingob on creating a programme of activities for domestic supplier development. The approval for the programme must be obtained within a year.

“While conditions attached to the approval of a merger are important to safeguard the public interest, the Competition Act provides for substantial remedies over the duration of operations of the merged entity in Namibia, concerning potential restrictive practices and/or abuse of dominance,” Mr Geingob said. Click here to continue reading…