Bentonville, Ark. -- Wal-Mart Stores, announced Monday that the company has completed its investment for a 51% stake in South African-based Massmart Holdings Limited.
Doug McMillon, president and CEO of Walmart International, said, “With the closing of our investment in Massmart, we are very excited about our entry into South Africa as well as the broader African continent. As we do in all of our other markets, we will work to serve underserved customers, to help people save money to live better. Just as important, we will grow in this part of the world, and as we do, we expect to create many jobs and support local suppliers. We have a global track record of working directly with small farmers, boosting their income and helping them become more sustainable, and we look forward to bringing those practices to South Africa.”
In terms of the transaction agreement, Walmart is entitled to nominate the chairman and three non-executive directors to the Massmart board. Walmart has asked current Massmart chairman Mark Lamberti to remain as chairman, while the board will be further strengthened by Walmart executives Doug McMillon, Jeff Davis, Wal-Mart Stores, Isenior VP finance & treasury, and JP Suarez, senior VP Walmart International business development.