Walmart Stores (Bentonville, Ark.) announced plans to buy a portfolio of low-cost consumer good stores in sub-Saharan Africa, reports Forbes.
A "non-binding expression of interest" was issued by the world’s largest retailer to Massmart last week. The two companies will now enter an exclusivity period to discuss Walmart offering $4.76 billion in cash for the company.
“Wal-Mart’s interest represents a vote of confidence in South Africa, as well as in Massmart and all its employees,” says Massmart's ceo Grant Pattison, reports Forbes.
Massmart, South Africa's third-largest listed retailer by value, is headquartered in Johannesburg and operates 290 stores, mainly in South Africa. The general merchandise retailer sells products, including electronics and food, using a low-margin, high-volume model.