Wal-Mart offers to buy South African Retailer Massmart 51%, worth $2.34 Billion

By on Nov 29, 2010 in Business Comments

Wal-Mart offers Massmart, to buy 51% of its stake, which is worth $2.34 billion (15.2 billion rand), according to international news sites on Monday.

Massmart Holding Ltd., a South African operator of several wholesale and retail chains will likely to agree with the proposal, provided with some conditions which may include a moratorium on retrenchments for a period after the takeover is completed, the news revealed.

If that will happen, Wal-Mart, as the world’s largest retailers, will take control of Massmart but will keep it listed in Johannesburg.

Back in September, Wal-Mart apparently said it was eager to buy the whole company until the offer ended up to only more than 50 percent last month.

Meanwhile, Wal-Mart’s proposal, which still needs approval from at least 75 percent of the investors of Massmart, will have an “irrevocable” support for its 148 rand per share offer from shareholders, which represents 35 percent of the company.

In addition, about 15 percent of Massmart’s investors was said to have offered “non-binding” support to the bid.

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