Partial sale of Massmart

It is possible that the American retail giant Walmart will be unable to acquire Massmart, a South African retailer. Instead Walmart may be able to acquire over 50 per cent of the company’s issued share capital. According to an announcement from Massmart, the original takeover plan was altered following consultation with major Massmart shareholders and South African stakeholders. Massmart has grouped together the DIY retail and builders’ merchant activities of its Builders Warehouse, Builders Express and Builders Trade Depot brands in its Massbuild division. Observers believe that the proposed takeover was intended to give Walmart a foothold on the African continent, which still remains largely untapped by international retail groups.