Massmart Holdings Says High Court Approves Wal-Mart Takeover
February 02 2011 - 7:36AM
Dow Jones News
Massmart Holdings Ltd. (MSM.JO) said Wednesday that a South
African high court approved Wal-Mart Stores Inc.'s (WMT) proposed
$2.4 billion offer to buy a controlling stake in the African
retailer as long as certain conditions are met.
The deal still needs to get regulatory approval from the
competition authorities and Financial Surveillance Department of
the South African Reserve Bank, Massmart said.
In January, Massmart said almost 98% of its shareholders voted
in favor of the deal to sell a 51% stake to Wal-Mart at 148 rand a
share. The transaction needed the support of at least 75% of
Massmart shareholders.
In addition, the retailer said in January that the deadline for
the Competition Authority review was extended.
Massmart operates several wholesale and retail chains, including
Game general-merchandise stores, Builders Warehouse for
construction and Makro warehouse-club stores. The bulk of the
company's 288 stores are in South Africa, although Massmart also
operates in 13 other sub-Saharan countries.
-By Devon Maylie, Dow Jones Newswires; +44 (20) 7842 9483;
devon.maylie@dowjones.com