Shoprite-Metcash merger gets nod
Aug 04 2011
Retail Wrap >>

The Competition Tribunal on Monday approved a merger between retailers Shoprite and Metcash, on condition that jobs are found for employees facing retrenchment.

The Competition Commission had recommended the merger should go ahead, on condition that Metcash find alternative work for employees who stand to be laid off during the restructuring. Employees who have applied for voluntary retrenchment should also be given the option of alternative jobs, unless Metcash accepts their applications.

The commission had said the merger was unlikely to significantly lessen competition in the relevant markets. The tribunal accepted the commission's finding, and on Monday decided the merger could go ahead with the employment-related condition.

Shoprite announced in March it would buy the franchise unit of Metcash Trading, which operates the supermarket chain Seven Eleven and Friendly Seven Eleven..

Source: http://m.news24.com/fin24/Companies/Retail/Shoprite-Metcash-merger-approved-20110801, 1 August 2011

Compliments of the UCS Retail Academy Team