OK-Makro deal under threat

January 7, 2011

By Mernat Mafirakurewa

The deal between Makro South Africa and OK Zimbabwe over the latter’s acquisition of Makro’s local subsidiary hangs in the balance following objections by the Affirmative Action Group (AAG).

The indigenous empowerment body has already taken the matter up with the Competition and Tariffs Commission arguing it is against the spirit of the indigenisation and empowerment drive.

In an interview on Thursday AAG secretary-general Tafadzwa Musarara said the acquisition of Makro by OK was crowding out smaller indigenous players.

“What OK is doing is stampeding out upcoming indigenous people. We are of the view that the deal is against the advancement of the indigenisation and empowerment drive,” he said.

“Indigenisation should be adding numbers of businesspeople not to continue benefiting the few individuals who are already shareholders,” he said.

He said Makro South Africa should have given first preference to the company’s management “through a management bay-out arrangement”.

A letter from OK Zimbabwe lawyers Bakers Attorneys made available to NewsDay says OK is currently in talks with relevant authorities to validate the sale.

“Our client has contracted with OK Zimbabwe in accordance with the law of Zimbabwe for the sale of specified assets and equipment to OK Zimbabwe Limited.

“Our client is in communication with the relevant Zimbabwe regulatory authorities in matters to do with its business operations in Zimbabwe and in respect of that sale.”

*Posted on http://www.newsday.co.zw

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