Wal-Mart Eyes Growth In Africa

[denem]

Source: Forbes

Wal-Mart Stores announced a plan Monday to buy a portfolio of low-cost consumer good stores in sub-Saharan Africa. The mega-retailer's stock opened at $54 a share Thursday and dropped 20 cents on the news.

The "non-binding expression of interest" that Wal-Mart ( WMT - news - people ) issued to Massmart was announced on the Johannesburg Stock Exchange, informing shareholders that two companies had entered into an exclusivity period to discuss Walmart offering $4.76 billion in cash for the company.

Massmart's CEO, Grant Pattison said: “Wal-Mart’s interest represents a vote of confidence in South Africa, as well as in Massmart and all its employees.” Massmart, with its headquarters in Johannesburg, operates 290 stores, mainly in South Africa.

The mega-retailer's move to enter a new market has a successful precedent in its expansion into China. Wal-Mart opened its first Chinese store in 1996, and has since grown its presence to 291 retail units.

Read more: http://www.forbes.com/2010/09/27/walmart-takeover-retail-markets-equities-consumer.html?boxes=marketschannelnews

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The minimum wage is South Africa is $48 a week (urban areas).

[ixion]

1. Note to Africa: Nooooooooooooooooooooooooooo!

That is all.

[glinda]

2. They paved paradise and put up a (global warming) parking lot... ooo lalala.

[foxfeet]

3. Can't China sell their own cheap shit in Africa? nt

[JCMach1]

4. They already do and Walmart can't contol the pricing in the same way they do in US

Walmart is a ripoff if you have ever bought the same Chinese crap elsewhere it is easy to see the major differences in price.

It's just that Walmart is the 500lb gorilla that can bully Chinese factories.


The 'real' cheap stuff is already all-over Africa.

This will be a Wal-mart FAIL!

[jmowreader]

5. Africa needs America to send them many things

Walmart is not one of those things.

[Javaman]

6. One stop shop for china-mart...

hire under paid employees to make cheap crap only to sell it back to those same under paid employees.

Closing the loop on poverty.

[sonomak]

7. They're joining the colonization of Africa by China