Massmart

Massmart
Public
Traded as (JSE: MSM)
Industry Retail
Founded 1990
Headquarters Sandton, South Africa
Number of locations
 410 (December 21, 2015)[1]
Area served
 Sub-Saharan Africa
Key people
 Guy Hayward[2]
Chief Executive Officer
Revenue Sales: R35.6588 billion (US$3.033 billion) (Q2:2014)[3]
Increase Pretax: R729.9 million (US$62.083 million) (Q2:2014)[3]
Number of employees
 5,000+ (2015)
Parent Walmart
Subsidiaries Makro
Game
Builder's Warehouse
CBW
Website www.massmart.co.za

Massmart Holdings Limited (JSE: MSM) is a South African firm that owns local brands such as Game, Makro, Builder’s Warehouse and CBW. It is the second-largest distributor of consumer goods in Africa, the largest retailer of general merchandise, liquor and home improvement equipment and wholesaler of basic foods.[4] As of 31 December 2015, Massmart operated 410 stores in South Africa and 12 other Sub-Saharan countries[5]. Its head offices are in the Massmart House in Sandton, City of Johannesburg Metropolitan Municipality.

History

Massmart was founded in 1990, beginning with the acquisition of six Makro stores. It listed on the JSE Limited on 4 July 2000 at R12.50 per share. Since its founding, Massmart has grown both organically and by acquisition. The firm acquisition history includes:

Divisions

A Makro store in Milnerton, Cape Town.

Massmart's stores are organized into 4 divisions. The stores included in each division are as follows:

Walmart acquisition

In November 2010, Walmart, the American super chain conglomerate made a bid to acquire majority shareholding (51%), in Massmart. At that time, the offer was valued at approximately R:17 billion (approximately US$2.54 billion or ₤1.54 billion).[7][8] On 18 January 2011, Massmart shareholders voted in favour of Walmart's offer of R148 per share.[8] The South African Competition Commission Tribunal gave its approval of the acquisition of 51% of the firm in May 2011.[9] Shortly thereafter, in June 2011, Walmart completed the purchase of 51% of the company's stock.[10]

In July the South African ministries of trade and industry, economic development and agriculture and fisheries lodged an appeal to the decision of the Competition Tribunal's decision to allow the merger with minimal conditions, this follows an appeal filed earlier by SACCAWU, a local labor union. In March 2012 the appeals court dismissed the case by the governmental ministries, but acknowledged that there were legitimate concerns about the effect of the deal on small producers and employment. The appeals court decision effectively put an end to the legal challenges to the merger.[11]

References

  1. ↑ "Walmart Corporate - South Africa". January 21, 2016.
  2. ↑ Moorad, Zeenat (13 April 2014). "Changing of The Guard At Retail Giant Massmart". Business Day (South Africa). Retrieved 12 February 2015.
  3. 1 2 Massmart, . (August 2014). "Interim Results to 29 June 2014" (PDF). Massmart.co.za. Retrieved 12 February 2015.
  4. ↑ Massmart, . (2014). "Overview of Massmart". Massmart.co.za. Retrieved 12 February 2015.
  5. ↑ "Walmart Corporate - South Africa". January 21, 2016.
  6. ↑ Business Daily Reporter, . (12 February 2015). "Nairobi’s Garden City Mall To Open Doors In May". Business Daily Africa (Nairobi). Retrieved 12 February 2015.
  7. ↑ Smith, Nicky (29 November 2010). "Wal-Mart Offers 16.5 Billion Rand for 51% of Massmart". Bloomberg News. Retrieved 12 February 2015.
  8. 1 2 BBC News, . (17 January 2011). "South African Retailer Massmart Backs Sale To Wal-Mart". BBC News. Retrieved 12 February 2015.
  9. ↑ BBC Business, . (31 May 2011). "Wal-Mart Cleared To Buy South Africa's Massmart". BBC News. Retrieved 12 February 2015.
  10. ↑ Team, Trefis (10 June 2011). "Wal-Mart Takes On Africa With Massmart". Forbes.com. Retrieved 12 February 2015.
  11. ↑ Tiisetso Motsoeneng, and Wendell Roelf (9 March 2012). "Wal-Mart Wins Final Go-Ahead for Massmart Deal". Reuters. Retrieved 12 February 2015.

External links

This article is issued from Wikipedia - version of the Thursday, January 21, 2016. The text is available under the Creative Commons Attribution/Share Alike but additional terms may apply for the media files.