Walmart deal complete

2011-06-20 14:35

Walmart has completed its acquisition of a controlling stake in Massmart, the US giant retailer said today.

“Walmart Stores announced today that the company has completed its investment for a 51% stake in South African-based Massmart Holdings Limited for R148 per Massmart ordinary share,” the company said.

Massmart will continue to trade on the JSE Limited.

Last month, the Competition Tribunal approved, with conditions, the deal in which Walmart would acquire a 51% stake in Massmart for R16.5 billion.

This was after fierce opposition from unions and government amid fears the deal would lead to job losses, deteriorating conditions of employment and hurt local procurement.

“With the closing of our investment in Massmart, we are very excited about our entry into South Africa, as well as the broader African continent,” said Doug McMillon, president and chief executive of Walmart International.

“As we do in all of our other markets, we will work to serve under-served customers, to help people save money to live better.

“Just as important, we will grow in this part of the world, and as we do, we expect to create many jobs and support local suppliers.

“We have a global track record of working directly with small farmers, boosting their income and helping them become more sustainable, and we look forward to bringing those practices to South Africa.”

Walmart can nominate the chairperson plus three non-executive directors to the board, and it has chosen Doug McMillon (president and chief executive), Jeffery Davis (senior vice-president finance and treasury) and JP Suarez (senior vice-president – international business development).

Mark Lamberti will remain chairperson, while Grant Pattison keeps his post as chief executive and Guy Hayward is still chief financial officer.

The Massmart group includes Game, Dion Wired, Makro, Builders Warehouse and Masscash.

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