U.S. retail giant Walmart has signed an agreement to begin buying the 47% stake in South African retailer Massmart it does not own.
Massmart had said on Monday that its majority owner Walmart had offered it 6.4 billion rand ($373 million) to purchase the remaining shares and to delist the company from the Johannesburg Stock Exchange.
The offer would allow Walmart to cut costs, invest more capital and turn around Massmart which has been posting losses and losing market share to bigger local rivals Shoprite, Woolworths and Pick n Pay.
"Ordinary shareholders are hereby advised that Massmart and Walmart entered into an implementation agreement on 31 August 2022, in terms of which Walmart indicated its firm intention to make an offer,"
the companies said in the statement.
Walmart will buy the shares using its cash reserves and has set a tentative date of Dec. 31 to complete the process.
Source: IOL
