South Africa has approved the retail giant Walmart?s agreement and cleared way for firm to gain a foothold in Africa. The deal approved is a $2.4 billion bid for control of retailer Massmart with minimal conditions. South Africa?s competition tribunal gave Walmart the chance to buy a 51 percent stake in Massmart, with conditions that the US retailer does not lay off any workers for the next two years.
“We have decided to approve the merger subject to the undertakings made by the parties becoming conditions for the approval,” the tribunal said in a statement.
Walmart in January signed a $2.5 billion offer for a controlling stake in Massmart, which runs nine wholesale and retail chains with 288 stores in 14 African countries. Ayo Akanbi, an economist at Pan African Investments said that the deal is a positive development for the country?s economy but its impact would only be felt if it contributed with job creation.