South Africa's Massmart, Wal-Mart Seek Organic Africa Expansion
June 29 2011 - 10:08AM
Dow Jones News
South African retailer Massmart Holdings (MSM.JO) said Wednesday
that its expansion plans in the rest of Africa will be mostly
achieved without mergers and acquisitions.
Wal-Mart Stores Inc (WMT) just completed a $2.4 billion merger
with Massmart Holdings for a 51% stake in the company last week
following an approval from South African competition authorities at
the start of June.
"We plan to grow mostly organically out of South Africa, there
are not a lot of targets," Massmart Chief Executive Grant Pattison
said.
Pattison said the retailer is trying to open a Game store, a
general merchandise discount store, in Luanda, Angola.
Massmart noted it has made a number of acquisitions in South
Africa in the food sector and said it will announce further
activity after it occurs noting other targets are "obvious," but
Pattison declined to elaborate.
Earlier Wednesday, the South Africa Commercial, Catering and
Allied Workers Union, or SACCAWU, which represents all workers in
the service sector, said it appealed the competition decision to
allow the Wal-Mart merger to go ahead.
The deal represents Wal-Mart's first entry onto the continent.
Wal-Mart International Chief Executive Doug McMillon said the
company plans to continue supporting the current Massmart
management team.
-By Devon Maylie, Dow Jones Newswires; +27 (11) 783 7848;
devon.maylie@dowjones.com