On Monday Wal-Mart stores Inc stated that it has offered sixteen decimal five billion rand in cash for acquiring fifty one percent controlling stakes in Massmart Holdings Ltd of South. It will be Wal-Mart's first entry in the sub-Saharan Africa's developing retail market.

The retail major based in Bentonville of Ark stated that the board of directors of Massmart came to an agreement of recommending an offer of one hundred and fifty eight dollars per share which is a nineteen percent premium of the thirty day average for the shares till 23, September just prior to the announcement of the companies that they were negotiating. It further stated that Massmart will retain its listing in Johannesburg if the deal gets squared up.

The president and chief executive of Wal-Mart International named Doug McMillon stated that the more they learn about Africa the more they get convinced that the nation is important with attractive growth features.

He further added stating that the combination is apt for their strategy of entering high-growth markets in which the retailer can apply its global expertise and can create strong returns.

Several wholesale and retail chains like Game, general merchandise, Builders Warehouse, a home improvement and construction business and the Makro warehouse-club stores are run by Massmart. Amongst the two hundred and eighty eight retail stores majority of the stores are in South Africa but the retailer wholesaler also runs its operation in thirteen other sub-Saharan countries.

The proposed tie-up has been opposed by Labor Unions stating tat Wal-Mart does not maintain good labor relations and argued further stating that with the Arrival of Wal-Mart South African suppliers will be harmed. Wal-Mart stated once more that it will give honor to all the existing contracts with organized labor unions.