Likely Wal-Mart Entry May Spur Race For SA Retail Assets

The likely acquisition of Massmart by Wal-Mart following a non-binding ZAR148 per share that could lead to an official cash offer that values the company at ZAR28.9bn (US$4.14bn) could spur interest in some of the other core South African retail assets. If Wal-Mart closes, it will be its biggest international deal since its acquisition of Asda in 1999, which ties into our long-held view that South African retail shares more in common with developed markets.

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