M & A Law Prof Blog

Editor: Brian JM Quinn
Boston College Law School

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Monday, January 17, 2011

Boycotting Walmart in South Africa?

Shareholders in South Africa just approved Walmart's $2.3 billion acquisition of South African retailer Massmart.  Now the Congress of South African Trade Unions (COSATU) - who opposed the sale - have called for  the 'mother-of-all-boycotts':

"We urge shareholders to vote against this deal. If the deal goes through, COSATU will do what it does best. We will organize a mother of all boycotts against Massmart," COSATU's first deputy president, Tyotyo James, told shareholders immediately before the vote.

In the end, the threat of a boycott wasn't enough to deter shareholders from voting in favor of the transaction (79%).  However, threading the needle that is local politics of South Africa will prove a challenge for Walmart in completing this deal.

-bjmq

 

 

http://lawprofessors.typepad.com/mergers/2011/01/boycotting-walmart-in-south-africa.html

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Comments

Wall mart is very reputed and I don't think there could be a possibility of boycott of Wall mart in any part of the country.

Posted by: free online crm | Jan 17, 2011 11:42:58 AM

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