Walmart in offer to buy remaining stake in South Africa’s Massmart

Walmart Inc. is increasing its focus on the South African market.

The retail giant has made a 6.4 billion rand ($377.6 million) offer for the remaining stake) of South African Massmart shares that it does not already own. Walmart acquired a 51% stake in Massmart in 2010 for $2.3 billion.

Since the end of 2019, Massmart’s share price has dropped 21% and it has had to close a number of locations, reported Bloomberg. The offer would provide Massmart with needed access to ongoing financial and operational support from Walmart to sustain the company turnaround, which has been impeded by external factors such as Covid-19 related trading restrictions, civil unrest in a core market and a challenging economic environment, the company said.

In separate news, Massmart announced that Mitchell Slape  will step down as CEO on Dec. 31, 2022. Slape, who has served as CEO since 2019, will be suceeded by Jonathan Molapo. Molapo was the CEO of Astron Energy before he joined Massmart in January

“Having had the opportunity to get to know Jonathan since he joined the company, we look forward to working alongside him as CEO and building on our commitment to South African customers, associates and partners,” stated Judith McKenna, president and CEO of Walmart International. “We continue to see opportunity in Massmart and the impact the business can have, providing people across the region with greater access to goods and services they want.”