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Walmart Moves to Africa
- By Williams Ekanem
- Published December 22nd, 2010
- Washington File
- Unrated
WHILE the prospect of a Walmart in each of the five boroughs of New York City has been met with major opposition, the retailer inked a relatively easier deal in South Africa. Last week, Walmart Stores Inc., acquired 51 per cent of the shares of Massmart Holdings Limited for ZAR148 per Massmart ordinary share, or $20.82 per share.
In a press statement, Doug McMillon, President and CEO of Walmart International, said, “We continue to be excited by the opportunity to invest in Massmart’s business and to accelerate its growth and expansion in South 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. This combination fits perfectly with our strategy to enter high growth markets in which we can apply our global expertise and generate strong returns.”
”This may be a good deal for Walmart and possibly for Massmart. It’s quite likely that - especially in light of the meltdown - Walmart has faced, or is facing a saturated market right now in the U.S. and will benefit from new markets,” notes African business expert Mojubaolu Olufunke Okome, Professor of Political Science at Brooklyn College. “South Africa provides such an opportunity and Massmart has done some of the groundwork since it has a successful business. Walmart can only gain from this. Massmart gets to partner with an internationally recognized business.”
Walmart also said it will continue to support Massmart´s cooperation with South Africa´s Broad Based Black Economic Empowerment (BEE). But based on the various labor complaints Walmart has faced in the U.S., Okome is skeptical.
In a press statement, Doug McMillon, President and CEO of Walmart International, said, “We continue to be excited by the opportunity to invest in Massmart’s business and to accelerate its growth and expansion in South 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. This combination fits perfectly with our strategy to enter high growth markets in which we can apply our global expertise and generate strong returns.”
”This may be a good deal for Walmart and possibly for Massmart. It’s quite likely that - especially in light of the meltdown - Walmart has faced, or is facing a saturated market right now in the U.S. and will benefit from new markets,” notes African business expert Mojubaolu Olufunke Okome, Professor of Political Science at Brooklyn College. “South Africa provides such an opportunity and Massmart has done some of the groundwork since it has a successful business. Walmart can only gain from this. Massmart gets to partner with an internationally recognized business.”
Walmart also said it will continue to support Massmart´s cooperation with South Africa´s Broad Based Black Economic Empowerment (BEE). But based on the various labor complaints Walmart has faced in the U.S., Okome is skeptical.
