One of the world’s largest retailers Wal-Mart has offered to buy JSE-listed wholesaler Massmart, the South African company said on Monday.
“Massmart has received a proposal from Wal-Mart stores which could lead to Wal-Mart making a cash offer to acquire the entire issued share capital of the company for a price of R148 per share,” Massmart said in a statement.
However, there was “no certainty” that discussions between the two companies would lead to a formal offer being made.
Doug McMillon, president and CEO of Wal-Mart International, said in a separate statement that the group was continuing to deploy its strategy to accelerate growth and improve returns in its international business.
“This region of the world fits with our focus on large, high-growth markets.”
McMillon said the potential combination with a market leader would enable it to add value to an already successful business through investments in people and technology.
“We respect and honour pre-existing union relationships and are committed to abiding by South African labour laws.
“We also look forward to serving communities and working with the leaders to support the continued development and momentum in the region.”
Andy Bond, executive vice-president with responsibility for Wal-Mart’s operations in the region, including the UK and Africa, said South Africa presented “a compelling growth opportunity” for Wal-Mart and offered a platform for growth and expansion in other African countries.
“South Africa possesses attractive market dynamics, favourable demographic trends and a growing economy.
“We are fully aware and supportive of Massmart’s broad based black economic empowerment (BEE) programme, and if the transaction is completed, we expect to continue and build on these efforts, working diligently with appropriate parties to grow skills and socioeconomic development, and to be a corporate and retail role model.” – Sapa