Wal-Mart Offers to Buy 51% of Massmart

SN STAFF

BENTONVILLE, Ark. — Wal-Mart Stores here on Monday said it has offered to acquire 51% of the shares of Massmart Holdings Limited, the diversified South African retailer, for about $2.4 billion.

Wal-Mart had previously disclosed it was discussing the acquisition of the whole company for $4.6 billion. The deal would give Wal-Mart its first presence in Africa.

"The more we learn about South Africa and the surrounding countries the more we are convinced that this is an important region with attractive growth characteristics," said Doug McMillon, president and chief executive officer, Walmart International. "This combination fits perfectly with our strategy to enter high growth markets in which we can apply our global expertise and generate strong returns."

Massmart has 290 stores of various formats in 13 countries in Africa.