Wal-Mart to Buy 51% of South Africa's Retailer

Nov. 29, 2010
The offer angered labor unions, with the powerful Cosatu labor federation calling the company one of the worst union-bashing employers in the world.

Wal-Mart plans to buy a controlling stake in South African wholesaler Massmart for over $2 billion after scaling back its offer for the company's entire stock, Massmart said on Nov. 29. Wal-Mart initially offered $4.2 billion.

"The total transaction is valued at approximately 17 billion rand for 51% of Massmart," the company said.

In September, the world's largest retailer launched an offer for Massmart but the company later announced that it was to reduce its bid, following talks between the firms.

"If approved, the transaction promises to be very positive for the regional economy, facilitating job creation, providing new opportunities for small and medium businesses and improving competitiveness," said Massmart chief executive Grant Pattison.

Massmart is the country's biggest wholesaler and operates 288 stores in 14 countries around Africa.

According to Massmart, the majority offer would ensure that the company remains listed on the Johannesburg Stock Exchange (JSE), enabling shareholders to continue to participate in future growth.

Wal-Mart's offer angered labor unions, with the powerful Cosatu labor federation calling the company one of the worst union-bashing employers in the world. The union also feared that the giant retailer, which is known for cheap prices, would undermine local firms.

The Bentonville, Arkansas-based company reported a record net profit of $3.32 billion in the first quarter of 2010, pushed by strong sales in China, Brazil and Mexico.

Copyright Agence France-Presse, 2010

Popular Sponsored Recommendations

Empowering the Modern Workforce: The Power of Connected Worker Technologies

March 1, 2024
Explore real-world strategies to boost worker safety, collaboration, training, and productivity in manufacturing. Emphasizing Industry 4.0, we'll discuss digitalization and automation...

3 Best Practices to Create a Product-Centric Competitive Advantage with PRO.FILE PLM

Jan. 25, 2024
Gain insight on best practices and strategies you need to accelerate engineering change management and reduce time to market. Register now for your opportunity to accelerate your...

Transformative Capabilities for XaaS Models in Manufacturing

Feb. 14, 2024
The manufacturing sector is undergoing a pivotal shift toward "servitization," or enhancing product offerings with services and embracing a subscription model. This transition...

Shifting Your Business from Products to Service-Based Business Models: Generating Predictable Revenues

Oct. 27, 2023
Executive summary on a recent IndustryWeek-hosted webinar sponsored by SAP

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!