Monday, January 17, 2011
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.