Retail giant Walmart this week announced that it wants to buy the remaining shares in Massmart for R62 a share, having initially acquired a 51% stake in the South African business in 2010 at R148 per share – R16.5 billion.
Bloomberg reports that the offer represented a 53% premium to Massmart’s closing price prior to the announcement, while Walmart intends to take the business private by delisting it from the JSE.
The group published its interim results for the period ended 26 June 2022 earlier this week, which reflected ongoing underperformance and the significant headwinds faced by each of its operating businesses, which could be compounded by the arrival of Amazon.com in the country. “Walmart acquired control of Massmart in 2010, in what was then a landmark transaction in the South African consumer landscape.
Massmart launched a management-led turnaround strategy in 2019 but has faced many headwinds since – primarily Covid-19 but also the civil unrest in 2021, which resulted in a loss of operations and disruptions to the supply chain on certain key inventory lines, flooding experienced in parts of the country, weak consumer demand for general merchandise and an increasingly competitive operating environment.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
South Africans foresee retail banking going completely digitalThe digital future of banking is inevitable and imminent, says a new report. DiscoveryBank DigitalBanking ITinBanking
Read more »
Investment platform Altvest to secondary list on A2X - IT-OnlineAltvest Capital, which listed on the Cape Town Stock Exchange (CTSE) in May, will also list its shares for trade on A2X Markets on 6 September. Companies listed on the CTSE are able to secondary list their shares on A2X and access both the retail and wholesale markets in South Africa. Altvest is a retail […]
Read more »
Dipula dumps noncore assets to improve its portfolioDipula sold five properties in Gauteng valued at R69m between March and July, and is looking to increase its retail and industrial exposure 🔒
Read more »
Data: A pot of gold for retailersRetail data is the best there is, but are retailers truly seizing this great opportunity not only to revitalise their own operations, but to open new revenue streams?
Read more »
Old Mutual reports rise in earnings, declares dividend‘We launched Bula Tsela and the retail component very much as a broad-based empowerment transaction, something similar to that when Old Mutual demutualised in 1999 and distributed free shares to all customers’: CEO Iain Williamson.
Read more »