S.Africa gov't says could take action on Wal-Mart

JOHANNESBURG May 31 (Reuters) - South Africa's government said it could take legal action if the conditions imposed on Wal-Mart's (WMT.N) $2.4 billion bid for local retailer Massmart (MSMJ.J) were not enough to prevent large-scale job cuts.

South Africa's competition authorities approved Wal-Mart's bid for 51 percent of local discounter Massmart on Tuesday, imposing conditions such as a two-year freeze on job cuts.

Unions and three government departments -- economic development, trade and industry, and forestry and fisheries -- had lined up against the deal, saying it could hurt local suppliers and lead to job losses.

The three departments said in a joint statement late on Tuesday they would need further study to determine whether the conditions were sufficient enough to prevent widespread job losses.

"Based on the outcome of the study of the conditions and the responses of Wal-Mart/Massmart, we will decide on the next steps to take. Government reserves its legal options at this stage," the three departments said. (Reporting by David Dolan; editing by Carol Bishopric)