Wal-Mart in talks to buy South Africa`s Massmart

source: BBC News

A Wal-Mart store in Massachusetts, USA Wal-Mart is expanding into emerging markets

Wal-Mart, the world’s largest retailer, is in talks to buy South African wholesaler Massmart in a deal worth more than $4bn.

Wal-Mart has tabled an offer of 148 rand a share, which values Massmart at about 30bn rand ($4.1bn; £2.7bn)

Declining sales in the US have led to Wal-Mart pushing into emerging markets to maintain growth.

Strong sales in China, Brazil and Mexico helped it to record a second-quarter profit of $3.6bn in 2010.

A firm foothold in Africa would see Wal-Mart add to its expansion plans.

“South Africa presents a compelling growth opportunity for Wal-Mart and offers a platform for growth and expansion in other African countries,” said Andy Bond, executive vice-president of Wal-Mart for [continue reading]

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