Image: Gallo

Andy Bond, Wal-Mart's executive vice-president at the Competition Tribunal in Johannesburg. The tribunal, which has to rule whether the purchase of Game, Makro and Builders Warehouse can go ahead, resumed the hearing that was halted earlier this year.

When asked by Bhana to provide the document of due diligence regarding the deal, Bond insisted that he had no knowledge of such document.

"You are the person who headed the team, where is the due diligence report? You are being evasive because you don't want to reveal if there was one. Don't play with me," said Bhana.

Bond was put through the ringer for much of Tuesday as he agitatedly tried to answer questions from the intervening parties.

In his witness statement, Bond said that Wal-Mart already sourced fruit for export from SA for its businesses in the US and the UK, and expected that additional export opportunities would result if the deal was approved.

"Wal-Mart sees SA as an attractive emerging market with significant growth prospects," Bond said.

Meanwhile, outside in Sunnyside, Pretoria, the chants of union supporters - who are opposed to the deal - provided a charismatic soundtrack throughout the day.

One of the main gripes of South African unions is Wal-Mart's alleged anti-union track record. "We have tried to allay their fears," Bond said on Tuesday.

Another pressing concern for the intervening parties is Wal-Mart's global network of suppliers, and the imposition they may place on local players.

"One of the benefits of the proposed transaction is that Massmart will have access to Wal-Mart's global procurement services. This does not, however, mean that there will be a significant change in the existing local procurement practices of Massmart," Bond said.

He added that with respect to hard goods, local procurement typically had the advantage of lower net costs, given lower transport and logistics expenses.

Earlier in the day, Massmart boss Grant Pattison was put in the hot seat by the chairman of the Competition Tribunal, Norman Manoin, who quizzed the chief executive on issues regarding retrenchments and local procurement.

Pattison said it was not the group's intention to "reduce the rights of workers".

"We're happy to explore re-employment but it would have to be on the pay scale of those divisions and at the terms and conditions of that division," he said.

The tribunal's further probing on these issues indicate that the body could approve the deal, but with certain conditions in place. The tribunal hearing is the final step in the deal process.

In February, the Competition Commission recommended that the 16.5 billion rand merger be approved without conditions.

Massmart is the owner of Game, Dion Wired and Builder's Warehouse among others.

Wal-Mart is the world's largest listed company by revenue, and operates in countries throughout the world including Canada, Brazil, China, Chile, Japan and Mexico.

The hearing will continue through to Friday, May 13, with Monday, May 16 reserved for legal argument.