Thaindian News

BENTONVILLE, ARKANSAS (BNO NEWS) — Wal-Mart Stores, Inc. on Monday announced that it has made a preliminary, non-binding proposal which could lead to Walmart making a cash offer to acquire Massmart Holdings Limited from South Africa.

The proposal was set for 148 South African rands (21.10 dollars) per share, that is, for $4.2 billion, but being an indicative, non-binding offer, it is subject to a number of conditions, including due diligence, and a period of reciprocal exclusivity granted by Massmart and Walmart.

In accordance with the South African legal requirements, Massmart, which is headquartered in Johannesburg, on Monday filed a Cautionary Announcement indicating the terms of the Contemplated Offer.

Massmart is one of the largest distributors of consumer goods on the African continent and is the leading African retailer of general merchandise, home improvement equipment and supplies.

The chain is also the market-leading retailer of basic foods in the region, running 290 stores in 13 countries in Africa, with the vast majority of its stores in South Africa. It also manages eight wholesale and retail chains operating under a variety of different brand names.

“This potential combination with a market leader will enable us to add value to an already successful business through investments in people and technology, said Doug McMillon, President and CEO of Walmart International.

“We respect and honor pre-existing union relationships and are committed to abiding by South African labor laws. We also look forward to serving communities and working with the leaders to support the continued development and momentum in the region,” McMillon added.