Devland Cash and Carry to take over Masscash operations in SA
The merger will promote a greater spread of ownership in the retail grocery space.
The Competition Commission has approved a merger between non-listed Johannesburg company Devland Cash and Carry and US-owned Massmart’s Masscash stores. The deal was authorized on the condition that no employees lose their jobs for nine months after the transaction date.
The move has saved over 600 people from losing their income for now. Devland Cash and Carry is majority black-owned, and the commission said the deal is poised to have “a positive effect on promoting a greater spread of ownership, particularly on increasing the levels of ownership by historically disadvantaged persons and workers in the grocery market”.
Devland owns and controls at least 20 retail and wholesale stores across South Africa, while Masscash operates wholesale and retail outlets for the lower segments of consumer groups, including Jumbo Cash and Carry, Trident, Shield, and Cambridge Foods.
In 2011, US retail giant Wal-Mart bought a 51 percent stake in Massmart, which owns Game, Makro, and Builders Warehouse.
The commission said that the merger is unlikely to lead to a substantial reduction or prevention of competition in any South African market.