Wal-Mart in talks to buy South Africa's Massmart

Guardian 27 September 2010

Wal-Mart, the world's largest retailer, is planning a major move into the fast-expanding African market, announcing today that it is in talks to buy South Africa's third-largest retailer, Massmart.

The move, which would be worth $4.2bn (£2.65bn), will be overseen by Asda's chairman, Andy Bond, who is responsible for operations in Africa. Wal-Mart is offering 148 rand (£13.40) a share for Massmart, which is nearly 10% higher than its last closing price.

The acquisition would be Africa's biggest deal in more than a decade, and Wal-Mart's largest since it bought the UK supermarket chain Asda in 1999.

Bond said: "South Africa presents a compelling growth opportunity for Wal-Mart and offers a platform for growth and expansion in other African countries. South Africa possesses attractive market dynamics, favourable demographic trends and a growing economy."

He said Wal-Mart supported Massmart's black economic empowerment programme and would aim to be a "corporate and retail role model".

Full article at http://www.guardian.co.uk/business/2010/sep/27/wal-mart-talks-buy-south-africa-massmart