Business Maverick: Walmart puts in R6.4-billion offer for beleaguered Massmart

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American retail giant, Walmart, which is already the majority 53% shareholder in Massmart, has proposed a R6.4-billion cash, buy-out offer for the shares it does not already hold in the SA-based retailer, a likely prequel to a major restructuring of the...

However, despite the significant investment from Walmart, the company has continued to flounder, posting a 152% increased headline loss of R903.5-million for the six months to the end of June this year. The group’s total loss inched up 4% to a loss of R1.029-billion from a loss of R1.072-billion last year. Margin and inflationary pressure resulted in trading profit from continuing operations declining from R792.1-million last year to R377.3-million during the period under review.

Referring to the potential entry of Amazon in the local market, Massmart’s chief executive, Mitch Slape says there will be competitors that come and go in the market, but Massmart remains focused on driving its own turnaround. “There is no question that Amazon will intensify competition in the market.

 

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