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Walmart bids for South African chain
September 27th, 2010
BENTONVILLE, Ark. – Walmart has made a preliminary offer for Massmart Holdings Ltd., a leading general merchandise retailer based in Johannesburg, South Africa.
The majority of Massmart's 290 stores are in South Africa, but the company has eight wholesale and retail chains operating under a variety of banners, and it has a presence in 13 countries in Africa.
"South Africa represents a compelling growth opportunity for Walmart and offers a platform for growth and expansion in other African countries," said Walmart executive vice president Andy Bond, who is responsible for the retailer's operations in the region. "South Africa possesses attractive market dynamics, favorable demographic trends and a growing economy."
Walmart has made a non-binding proposal that could result in an offer of about $4.1 billion for Massmart, which is South Africa's third largest retailer, behind Shoprite Holdings Ltd. and Pick n Pay Stores Ltd.
"Walmart's mission is to save people money so that they can live better lives," said Doug McMillon, president and chief executive officer of Walmart International. "We believe this proposed acquisition is a great opportunity to deliver on that mission for all the people in the regions of the African continent where Massmart currently operates."