Wal-Mart has announced that it's scaling back its bid for full ownership of Massmart, the South African retailer with operations in 14 African nations; Wal-Mart will opt for a controlling stake business model, according to a recent Financial Times report. It has also agreed to allow Massmart to remain listed on the Johannesburg Stock Exchange (JSE.)
South African Unions Original Opposition
In 1991, the Bentonville, Arkansas-based Wal-Mart constructed its first non-US store in the suburbs of Mexico City. In Mexico, it has an 68% stake in Wal-Mart de Mexico (WalMex), a model that is emerging as a negotiating tool with trade unions in South Africa who originally voiced strong opposition to its initial full ownership bid for Massmart.
"COSATU Western Cape is alarmed that we are even considering an offer from Wal-Mart to take over key strategic national companies in South Africa,” said the Congress of South African Trade Unions (COSATU) in a statement that was reported by Forbes. “We will oppose the setting up of any Wal-Mart stores in the Western Cape. These companies are notoriously anti-union and anti-workers rights, and an affront to workers rights wherever they operate around the world."
