SAfrica not against foreign investments-paper

JOHANNESBURG, April 5 (Reuters) – South Africa is not
against foreign investment, Business Day reported on Tuesday,
amid worries that its intervention in takeover hearings
involving Wal-Mart (WMT.N: Quote, Profile, Research) and Kansai Paint (4613.T: Quote, Profile, Research) could put
off investors.

Wal-Mart is the last stages taking control of local retailer
Massmart (MSMJ.J: Quote, Profile, Research) for $2.3 billion, a deal the government said
would open floodgates to imports that would undermine domestic
manufacturers.

Japan’s Kansai Paint, which is the middle of $260 million
takeover of Freeworld Coatings (FWDJ.J: Quote, Profile, Research), is also facing
opposition from the government .

Business Day newspaper said the Trade and Industry
Department was worried that Kansai was taking over a unique
South African technology that added a local component in auto
manufacturing.

“It’s important to stress that the department is motivated
by these considerations and this intervention should not be
construed as opposition to foreign direct investment,” Lionel
October, the department’s director general was quoted as saying.

No one in the department could immediately comment.
(Reporting by Tiisetso Motsoeneng; Editing by David Holmes)

SAfrica not against foreign investments-paper