Merger of Massmart stores with wholesaler rescues over 600 jobs.
At least 640 jobs will be saved as a result of the merger between Masscash and Devland Cash and Carry, whereby Devland will acquire certain stores owned by Masscash, which is controlled by Massmart Holdings Limited.
Devland owns and controls several firms in the retail and wholesale trade sector. The target stores in the merger are mainly grocery retail stores in various parts of the country.
Devland is black-owned and it is expected that the merger will also have a positive effect on the promotion of a greater spread of ownership, to increase the levels of ownership by historically disadvantaged persons and workers in the grocery market.
Employees of the target stores will be transferred in terms of section 197 of the Labour Relations Act and the conditions of their employment will not be negatively affected.
Although the Competition Commission recommended unconditional approval of the transaction (and the merger parties undertook that there would not be any retrenchments as a result of the merger), the Competition Tribunal has imposed a condition that no employees will be retrenched as a result of the merger for a period of nine months following the transaction’s implementation date.
The Tribunal and Commission concluded that the merger is unlikely to lead to any substantial lessening or prevention of competition in any market in South Africa.
