Home / Knowledge / News / Walmart confirms offer to acquire 51% of Massmart
Walmart confirms offer to acquire 51% of Massmart
29
Nov '10
Wal-Mart Stores Inc announced that it has offered to acquire 51% of the shares of Massmart Holdings Limited for ZAR148 per Massmart ordinary share. Massmart will continue to trade on the JSE Limited to provide Massmart shareholders with the ability to participate in the growth opportunity of the combined entity.

The offer, which represents a 19.2% premium to the 30-day weighted average price on September 23, the last trading day prior to the indicative offer announced on September 27, 2010, has been unanimously recommended by the Massmart Board of Directors.

Doug McMillon, President and CEO of Walmart International, said: "We continue to be excited by the opportunity to invest in Massmart's business and to accelerate its growth and expansion in South Africa. The more we learn about South Africa and the surrounding countries the more we are convinced that this is an important region with attractive growth characteristics. This combination fits perfectly with our strategy to enter high growth markets in which we can apply our global expertise and generate strong returns.

“Also, this acquisition will allow us to bring to South Africa our significant experience in connecting small farmers with Walmart's global supply chain, boosting farmer income as well as helping them improve the quality of their produce. We hope to help South African suppliers grow their businesses, become more efficient, environmentally friendly and ultimately more competitive."

Andy Bond, Executive Vice President with responsibility for Walmart's operations in the region, including the United Kingdom and Africa, commented: "The due diligence effort we have conducted over the last eight weeks has underlined our confidence that this is a compelling combination that will create significant value for both companies, and we look forward to participating in the regulatory process to complete this acquisition. Importantly, we believe bringing Massmart and Walmart together will offer substantial benefits to Massmart customers, employees and shareholders, and will unlock new growth opportunities ahead."

Bond continued, "In addition to supporting Massmart's growth strategy, we believe Walmart can drive meaningful value creation through enhanced buying efficiencies, expanded distribution and logistics capabilities and sharing of global best practices in retail formats and information technologies."

Walmart fully understands and is supportive of the constructive position that Massmart has taken on Broad Based Black Economic Empowerment (BEE), and expects to broaden and accelerate these efforts. Walmart also intends to work closely with local partners to grow skills and foster socio-economic development in the region, and by so doing, to be a corporate and retail role model. Further, Walmart will respect and honor all pre-existing contracts with organized labor bodies.

The offer remains subject to acceptance by Massmart's shareholders, as well as certain customary conditions and relevant regulatory approvals in South Africa. The offer documents are expected to be mailed to Massmart's shareholders by December 9, 2010.

Wal-Mart Stores Inc

Must ReadView All

Textiles | On 18th Jan 2017

China lays out plan to boost foreign investment

The Government of China has outlined measures to boost foreign...

Prime Minister Theresa May speaking on the UK government's negotiating objectives for exiting the EU. Courtesy: UK government

Textiles | On 18th Jan 2017

UK to pursue trade agreements with other countries

The United Kingdom will pursue free trade agreements with the EU and...

Courtesy: IMF

Textiles | On 18th Jan 2017

Risks to global growth outlook skewed to downside: IMF

Risks to the global growth outlook are two sided but are assessed to...

Interviews View All

Vasanth Kumar
Max Fashion India

‘Traditional high-street retailers are now willing to offer franchisees to ...

Sanjay Desai & Ashish Mulani
True Colors

Digital textile printing will be the technology of the future

Neel Sawhney
One Friday

‘The share of kidswear segment in the online sector is still small in...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
January 2017

January 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search