Wal-Mart Stores completes Massmart deal
BENTONVILLE, Ark. — Wal-Mart Stores announced that it has completed its investment for a 51% stake in South African-based Massmart Holdings Limited for ZAR148 per Massmart ordinary share.
Massmart will continue to trade on the JSE Limited to provide Massmart shareholders with the ability to participate in the growth opportunity of the combined entity.
Under the terms of the agreement, which gives the company the right to nominate the chairman as well as three non-executive directors to the Massmart board, Walmart has asked current Massmart chairman Mark Lamberti to remain as chairman and has nominated Walmart executives Doug McMillon, Jeff Davis, Wal-Mart Stores Inc. SVP finance and treasury, and JP Suarez, SVP Walmart international business development, to serve as directors.
Doug McMillon, president and CEO of Walmart International, said, "With the closing of our investment in Massmart, we are very excited about our entry into South Africa as well as the broader African continent. As we do in all of our other markets, we will work to serve underserved customers, to help people save money to live better. Just as important, we will grow in this part of the world, and as we do, we expect to create many jobs and support local suppliers. We have a global track record of working directly with small farmers, boosting their income and helping them become more sustainable, and we look forward to bringing those practices to South Africa."