Walmart Eyes African Market
Posted on September 27, 2010 by
BENTONVILLE, Ark.-Walmart has made a preliminary, non-binding proposal to acquire South African retailer Massmart Holdings, which, if successful, would represent the company's first retail operations on the African continent.
According to the proposal, Walmart would make a cash offer for Massmart that would be worth about $21 per share.
Headquartered in Johannesburg, Massmart is one of Africa's largest retailers of consumer goods, including general merchandise, home-improvement equipment and supplies, according to a Walmart statement. The company runs 290 stores in 13 African countries, the vast majority of which are in South Africa. It also operates eight wholesale and retail chains under a number of brand names.
"We are continuing to deploy our strategy to accelerate growth and improve returns in our international business, and this region of the world fits with our focus on large, high-growth markets," said Doug McMillon, president and chief executive officer of Walmart International.