Wal-Mart makes over USD 4 bn bid for South Africa's Massmart

The all-cash bid, which would offer 148 rands for each Massmart share, is subject to many conditions including due diligence and exclusivity period, both companies said today.
Going by the price offered, the proposed deal would be worth around 30 billion rands (about USD 4.3 billion).

Headquartered in Johannesburg, Massmart runs 290 stores in 13 countries in Africa and also manages eight wholesale and retail chains operating under different brand names.
The transaction would also help Wal-Mart to bolster its overall business by tapping fast-growing markets, the firms said in a statement.

"South Africa presents a compelling growth opportunity for Wal-Mart and offers a platform for growth and expansion in other African countries," Andy Bond, Executive Vice President who is responsible for Wal-Mart's operations in the region, said.
In a regulatory filing to the Johannesburg Stock Exchange, Massmart has cautioned shareholders that there can be no certainty that the discussions "will lead to a formal offer being made".

Wal-Mart Stores has more than 8,500 retail units under 55 different banners in 15 countries.