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Wal-Mart (WMT) is now in its fifth week of due diligence on Massmart (MMRTY.PK), the South...

Wal-Mart (WMT) is now in its fifth week of due diligence on Massmart (MMRTY.PK), the South African firm Wal-Mart may buy for 32B rand ($4.6B). Masmmart, which operates warehouse-sized discount retail stores, would give Wal-Mart a head start in sub-Saharan Africa over European rivals Carrefour (CRERY.PK) and Tesco (TSCDY.PK).
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  • positivethoughts
    , contributor
    Comments (1928) | Send Message
     
    Walmart, with all its experience and information systems, should be able to correctly assign a market value to this stock. I have confidence that a deal with get done. Walmart needs to expand and grow its earnings at a faster pace than it has in the past 10 years and acquisitons like this one make sense.

     

    Also, being that they are buying a retailer and not venturing into some unchartered waters, the integration should be easy and returns from the acquisition would come shortly. Furthermore, Walmart can obviously produce greater profits from such an operation - given its size and processes than currently being produed by the existing non-walmart owners.
    27 Oct 2010, 10:03 AM Reply Like
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