Walmart completes Massmart takeover
Fin24

Walmart completes Massmart takeover

2011-06-20 15:48

Johannesburg - US retailer Walmart said on Monday it has completed its acquisition of a controlling stake in Massmart Holdings [JSE:MSM] and is naming three new members to its board.

Competition authorities approved Walmart's R16.5bn bid for 51% of Massmart with minimal conditions last month, although the government has said it still reserves the right to take legal action against the deal.

The world's largest retailer said in a statement it had completed its investment and that it expected to create "many jobs" and support local suppliers in its newest market.

Walmart, which is now entitled to nominate the chairperson and three non-executive directors to Massmart's board, said it asked current chair Mark Lamberti to remain in his position.

It also nominated executives Doug McMillion, Jeff Davis and JP Suarez to the board.

McMillon is the head of Walmart's international business, while Suarez is a senior vice-president of international business development. Davis is a senior vice-president at Walmart International's finance and treasury unit.

Massmart said in a separate statement that Dods Brand, Kuseni Dlamini, Jim Hodkinson, Nigel Mathews, Peter Maw and Dawn Mokhobo had resigned from its board.

Comments
  • Born To Fish - 2011-06-20 15:55

    Now that Wallmart own Massmart I wonder if they are still going to treat all their customers like thieves when they want to leave the store!

      d54 - 2011-06-20 18:44

      What's the matter? Afraid of being caught again?

      Lancelot - 2011-06-21 10:39

      The first time they do that to me will be the last time I ever use their store

  • Krush - 2011-06-20 15:57

    The most important thing to know about walmart - be careful what you're wearing.

  • Justin Schon - 2011-06-20 16:06

    Well done to Capital Markets!! Well done.. Only thing SA Govt can do is pass a law that all retailers need to ensure that more than 51% of the stock on the shelves are locally produced. Ensure quality controls on products and encourage local busineses to compete.

  • Louis Cipher - 2011-06-20 16:07

    Maybe this will get Malema's mind off nationalising the mines for a bit. His focus will shift like the eye of Sauron! LOL! Such a huge deal changing hands and no politicians benefitting?

      robincasino - 2011-06-21 09:17

      Somebody is benefiting!! Interesting how Government approves a deal whereby an international corporation can acquire a controlling stake in a South African company to gain a foothold in Africa, but squash a deal that enables a South African company to take over an international counterpart. Had the deal gone through, it would have made the SA company the biggest emerging markets telecoms provider -- MTN vs Bharti Airtel...

      scud - 2011-06-21 09:46

      "Malema's mind"? Have you found it? wow!

  • wetter - 2011-06-20 16:08

    haha lekker cosato

  • No8 - 2011-06-20 16:10

    It will be very interesting to see what effects Wallmart will have in the retail industry in SA. I beleive some healthy competition will be good for the consumer and will increase customer service levels, break the monopoly some of the retailers have at the moment, and offer the consumer a bigger choice. Welcome Wallmart!

      Dawoedctsa - 2011-06-21 09:23

      i agree and hope that this has some huge benefits to the consumer who is tired of been shafted by the two big boys (lets not mention names) heres to some healthy competition.

  • Babba x - 2011-06-20 16:34

    Ons is die ANC. Ons sal jelle hof toe vat. Ons sal ook dans in die straat. Ons sal jelle wys!!

  • Welleducated - 2011-06-20 17:23

    Google "wallmart is a disease". The disease is coming to SA now.

  • shauncro - 2011-06-20 17:27

    WOOHOO! I don't think it's going to be a great difference, but it will be nice to have an international player in the country. Might even set a proper service standard!

  • Kevin - 2011-06-20 17:33

    How sad. Bad for manufacturing,bad for retail jobs. Bad for all that Massmart profit going back to America every year just like Edgars,Jet and CNA who are all 100% American owned. All that profit going to America

      Welleducated - 2011-06-21 07:26

      True "Walmart is an economic disease" - google that and see the truth behind an organisation that fights dirty in all areas of business. Simply sickening. We don't need this is in SA,

      Chillipeppa - 2011-06-21 09:01

      Its not necessarily profit "going to America" but "BACK to America" every year would signify that we have American money pouring into this economy as an investment and people who invest are likely to take their profits and invest those again. Its up to us to ensure our economy is global and sustainable. Leaders like Juju and Mugabe don't really grasp this though. Thats why Bob is King of his Banana Republic and can only rattle his empty buckets

  • wetter - 2011-06-20 17:40

    ???

  • rimmoah - 2011-06-20 21:29

    hopefully they will start kicking lazy butts out of all their game stores.go to most game stores and you will find lazy disinterested staff who know little and care less about the products they are selling

  • Mboneni - 2011-06-20 22:01

    I think as de employee of massmart,we are going to enjoy de fruit of our hands as wallmart is de world largest retailer.Our consumer will benefit a lot as wallmart believe in lower prices.Phungo M

  • Maryke - 2011-06-21 21:38

    Our South African Government should oppose buying and importing slave goods.Not only do these products come in so cheap that they kill any local ,"Proudly South African" competition ,but these products are designed not to be durable or lasting so that the consumer would buy the same product repeatedly.These imported goods should be heavily taxed since it is SLAVE GOODS so that consumers would opt for the humanitarian friendly products which is probably more durable any how!!

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