Walmart Considers Scaling Back Massmart Plans
Walmart Stores (WMT) may change its plans to buy South African retailer Massmart, choosing instead to take a majority stake in the company.
This would allow Massmart to maintain its listing on the Johannesburg Stock Exchange, The Wall Street Journal reported.
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Walmart is now weighing up the option of buying a stake in Massmart greater than 50% of the company. The price would remain 148 rand ($21.0436) a share.
The two companies have been in talks and Walmart has made a non-binding proposal to buy the company for 32 billion rand ($4.53 billion). Walmart has not tabled a formal offer.
Taking a stake in Massmart would match Walmart's strategy in Mexico, where it owns 68% of Walmart de Mexico, Latin America's largest retailer.
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