Massmart

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Massmart Holdings Limited
Company type Public Subsidiary
JSE: MSM
IndustryRetail
Founded1990;34 years ago (1990)
FounderMark Lamberti [1]
FateAcquired by Walmart
Headquarters,
Number of locations
411 (31 October 2022) [2]
Area served
Sub-Saharan Africa
ProductsFood, Liquor, General merchandise, Home Improvement
RevenueIncrease2.svg R91.564 billion (2016) [3] :40
Increase2.svg R2.603 billion (2016) [3] :40
Increase2.svg R1.322 billion (2016) [3] :40
Total assets Increase2.svg R31.883 billion (2016) [3] :43
Total equity Increase2.svg R6.183 billion (2016) [3] :43
Number of employees
45,000+ (2015)
Parent Walmart (2011–present)
Divisions Massdiscounters, Masswarehouse, Masscash, Massmart
Subsidiaries Makro
Game
Builder's Superstores
CBW
Website www.massmart.co.za

Massmart Holdings Limited 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 October 2022, Massmart operated 411 stores in South Africa and 12 other Sub-Saharan countries. [5] Its head offices are in the Massmart House in Sunninghill, Johannesburg. [6]

Contents

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. Cape Town 30 Jan 2012 019.JPG
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 R17 billion (approximately US$2.54 billion or £1.54 billion). [8] [9] On 18 January 2011, Massmart shareholders voted in favour of Walmart's offer of R148 per share. [9] The South African Competition Commission Tribunal gave its approval of the acquisition of 51% of the firm in May 2011. [10] Shortly thereafter, in June 2011, Walmart completed the purchase of 51% of the company's stock. [11]

In August 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. [12]

In August 2022, Walmart made an offer to acquire the remaining non-controlling shares of Massmart, [13] and by the end of November the scheme had been finalized and closed. [14] [15]

Major shareholders

Below is the group's largest shareholders as at December 2016: [3] :25

Majority shareholdersDecember 2016 (%)December 2022 (%)
Walmart 52.4100.0
Aberdeen Asset Management PLC 21.30.0
Public Investment Corporation (SA)5.60.0
Others20.70.0

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References

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  15. https://www.listcorp.com/jse/msm/massmart-holdings-limited/news/finalisation-announcement-in-respect-of-the-scheme-of-arrangement-between-massmart-and-its-shareholders-2794292.html