South African court dismisses Wal-Mart takeover challenge

A South African court cleared the way on Friday for the world's top retailer Wal-Mart to take its first foothold in Africa by dismissing a government bid to set aside its $2.2 billion takeover of local chain Massmart. The case is seen as a bellwether for foreign investment in South Africa.
"The arguments of the ministers do not justify the setting aside of the (competition) tribunal decision," said Judge Dennis Davis, ruling that the merger will not be sent back to be reheard. The court ruled against an application by three government ministers seeking to review and set aside the merger approval last May of Wal-Mart's 16.5 billion rand (1.7-million euros) purchase of a 51 percent stake in Massmart.