Massmart

Massmart

225px Logo
Type	Public
Traded as	(JSE: MSM)
Industry	Retail
Founded	1990
Headquarters	Sandton, South Africa
Number of locations	414 (April 30, 2016)
Area served	Sub-Saharan Africa
Key people	Guy Hayward Chief Executive Officer
Revenue	Sales: R35.6588 billion (US$3.033 billion) (Q2:2014)
Operating income	Pretax: R729.9 million (US$62.083 million) (Q2:2014)
Number of employees	5,000+ (2015)
Parent	Walmart
Subsidiaries	Makro Game Builder's Warehouse CBW
Website	www.massmart.co.za

Massmart Holdings Limited (JSE: MSM) is a South African firm that owns local brands such as Game, Makro, Builder’s Warehouse and CBW. It is the second-largest distributor of consumer goods in Africa, the largest retailer of general merchandise, liquor and home improvement equipment and wholesaler of basic foods. As of 31 March 2016, Massmart operated 414 stores in South Africa and 12 other Sub-Saharan countries. Its head offices are in the Massmart House in Sandton, City of Johannesburg Metropolitan Municipality.

History

Massmart was founded in 1990, beginning with the acquisition of six Makro stores. It listed on the JSE Limited on 4 July 2000 at R12.50 per share. Since its founding, Massmart has grown both organically and by acquisition. The firm acquisition history includes:

• 990 Shield members in March 1992
• 420 Dion stores in May 1993
• 814 CCW stores in June 1998
• 26 Game stores in July 1998
• 6 Jumbo stores in April 2001
• 122 Browns and Weirs stores in July 2002
• 69 Builders Warehouse stores in October 2011
• 13 De Lay Rey stores, 14 Servistar stores, and 34 Federated Timber stores in June 2005
• 16 Cambridge Food stores in December 2008
• 43 Buildrite stores in June 2009
• In December 2011 South Africa's Competition Tribunal approved the acquisition, with conditions, of Fruitspot (wholesaler of fresh fruits and vegetables) and the Rhino Group.

Divisions

A Makro store in Milnerton, Cape Town.

Massmart's stores are organized into 4 divisions. The stores included in each division are as follows:

• Massdiscounters
  • DionWired (operates in South Africa)
  • Game (operates in South Africa, Botswana, Ghana, Malawi, Mozambique, Namibia, Nigeria, Tanzania, Uganda, Zambia and Kenya - beginning May 2015)

• Masswarehouse
  • Makro (operates in South Africa, two stores in Zimbabwe were sold in fiscal year 2011)
• Massbuild
  • Builders Warehouse (operates in South Africa and Botswana)
  • Builders Express (operates in South Africa)
  • Builders Trade Depot (operates in South Africa and Mozambique)
  • Kangela (operates in Mozambique)
• Masscash
  • CBW (operates in South Africa, Botswana, Lesotho, Mozambique, Namibia, and Swaziland)
  • Jumbo (operates in South Africa and Botswana)
  • Cambridge Food (operates in South Africa)
  • Shield (operates in South Africa, Botswana, Lesotho, Namibia, and Swaziland)
  • Kawena (operates in Mozambique)

Walmart acquisition

In November 2010, Walmart, the American super chain conglomerate made a bid to acquire majority shareholding (51%), in Massmart. At that time, the offer was valued at approximately R:17 billion (approximately US$2.54 billion or ₤1.54 billion). On 18 January 2011, Massmart shareholders voted in favour of Walmart's offer of R148 per share. The South African Competition Commission Tribunal gave its approval of the acquisition of 51% of the firm in May 2011. Shortly thereafter, in June 2011, Walmart completed the purchase of 51% of the company's stock.

In July the South African ministries of trade and industry, economic development and agriculture and fisheries lodged an appeal to the decision of the Competition Tribunal's decision to allow the merger with minimal conditions, this follows an appeal filed earlier by SACCAWU, a local labor union. In March 2012 the appeals court dismissed the case by the governmental ministries, but acknowledged that there were legitimate concerns about the effect of the deal on small producers and employment. The appeals court decision effectively put an end to the legal challenges to the merger.

External links

• Official website