Walmart offers to buy out Massmart

The Walmart logo is displayed on a store in Springfield, Ill., May 16, 2011.(AP/Seth Perlman)
The Walmart logo is displayed on a store in Springfield, Ill., May 16, 2011.(AP/Seth Perlman)

Walmart Inc. has offered its African operations $377.6 million to buy the 47% of the unit that it doesn't already own, the company said Monday.

Walmart currently owns 53% of Massmart Holdings Ltd., an African retail group with stores under many brands and formats. Most operate in South Africa, but a multi-category discount chain called Game does business in 12 other sub-Saharan African nations as well.

Other chains under Massmart's banner include Makro, Builders, Jumbo and Shield.

Walmart bought a majority interest in Massmart in 2011, according to Walmart's website. Walmart did not immediately respond to an inquiry about why it wants to buy the rest of the company.

Massmart released earnings Monday for the first 26 weeks of 2022. It reported sales up 1.9% over the same period last year, although same-stores sales rose 4.3%. Same-store sales, or sales at stores open at least a year, are considered a key indicator of a retailer's health.

E-commerce sales climbed 50% in the year's first half.

"We continue to see opportunity in Massmart and the impact the business can have, providing people across the region with greater access to the goods and services they want," said Judith McKenna, chief executive of Walmart International.


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