U.S. retail giant Walmart has reached an agreement with South African retailer Massmart to acquire the remaining 47% stake in the company it does not already own.
According to the representatives of Massmart, its majority owner Walmart has made a 6.4 billion rand ($377.6 million) offer for the stake. If the deal is done, the company will be delisted from the Johannesburg Stock Exchange.
Walmart will be able to cut costs, make more investments and provide financial support for the turnaround of Massmart due to this agreement. It is known that Massmart, a South African retail group, has been struggling and losing market share to more competitive and profitable local retailers.
Walmart will buy out the rest of Massmart using its cash reserves. The leading retailer officials claim that the deal may be completed by December 31. As reported by the company management, further details will be announced on Sept 23.