Wal-Mart and Massmart, a South African retail chain, announced that Massmart’s board has accepted Wal-Mart’s offer to take a 51% stake in the Johannesburg-based company, according to a Johannesburg business newspaper, the Financial Mail, and news releases from the companies.

The deal, if approved, would be worth US $2.4 billion (ZAR 17 billion), the Massmart statement said. Massmart is a retail conglomerate that operates 288 stores in sub-Saharan Africa.

“This is a milestone in Massmart’s history and is a vote of confidence not only in Massmart and our employees, but also in the strong growth potential of South Africa and the continent,” Massmart CEO Grant Pattison said in the statement.

The deal would give Wal-Mart, the world’s largest retailer, an entry into the fast-growing market in Africa.

“This combination fits perfectly with our strategy to enter high growth markets in which we can apply our global expertise and generate strong returns,” Doug McMillon, president and CEO of Wal-Mart International, said in a statement.

Wal-Mart originally had sought full control of the company when the deal was announced in September, but some Massmart shareholders objected, the newspaper reported.

The deal must be approved by 75% of Massmart shareholders and South Africa’s Competition Commission, which is expected to make a decision early next year, the newspaper reported.

Photo: Wal-Mart

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