The world’s largest retailer, Walmart, has made a potential offer to acquire all the outstanding shares in Massmart that it does not already own, effectively resulting in the delisting of the company from the Johannesburg Stock Exchange. At present, Walmart has over 10,000 stores and clubs under 46 banners in 24 countries and eCommerce websites.

This acquisition will see Walmart gain full ownership of Massmart following on its $2.8billion part acquisition in 2010. The portfolio, according to Massmart’s website, will include 353 stores across South Africa accounting for 1,287,113 sqm of space and 50 stores across 12 countries in Sub Saharan Africa accounting for 183,707 sqm of space which include Kenya, Uganda, Ghana, Nigeria, Tanzania, Malawi, Zambia, Mozambique, Botswana, Namibia, Lesotho and Eswatini.

Some of Massmart’s major brands include:

• Game (discount retailer of general merchandise and non-perishable groceries for home, leisure and business use) It is the most popular brand by Massmart and is  present in Kenya, Uganda, Tanzania, Zambia, Malawi, Mozambique, Botswana, Namibia, Nigeria and Ghana outside of South Africa.
• Makro (Multi-category big box  stores selling food, liquor and general merchandise to retail and wholesale customers). It is only present in South Africa
• Builders (South Africa leader in home improvement, DIY enthusiasts and building and maintenance contractors complimented by an online platform).It is present in Kenya, Zambia,Mozambique, Botswana and South Africa
• Jumbo (Food, liquor and general merchandise wholesalers).It is present in Botswana, Namibia, Zambia, Lesotho, Eswatini and Mozambique in addition to South Africa
• Shield (voluntary buying association servicing wholesale and independent trader consumers).It is only present in South Africa
• Rhino (Food retailer with a wide range of quality national brands and own brand label across fresh and perishable products).It is only present in South Africa
• Fruitsport (Wholesaler and distributor of fresh and cut fruit and vegetables in Gauteng, Kwazulu-Natal and the Western Cape).
• Cambridge Food(Food retailer with a wide range of quality national brands and own brand label across fresh and perishable products).

So far, the retail sector in South Africa has recorded several landmark deals over the past 2 years  including the finalisation of the sale of Atterbury Value Mart and the Nicolway Shopping Centre for over R1bn in both transactions. 

As such, this deal specifically comes as a much needed boost of investor confidence in Africa’s retail sector, where Massmart had previously announced that they were reviewing their portfolio outside the South African Development Community (SADC) region to achieve a ‘coherent portfolio’ pointing towards potential exits and disposals. 

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