Stein­hoff, Sho­prite in merger talks to cre­ate Africa’s largest re­tail com­pany

Financial Nigeria Magazine - - Finance -

Stein­hoff In­ter­na­tional Hold­ings and Sho­prite Hold­ings Limited, two South African re­tail­ers, have said they are in merger talks to com­bine their African re­tail busi­nesses.

The pro­posed deal is ex­pected to cre­ate a “di­ver­si­fied African re­tail busi­ness of sig­nif­i­cant scale and in­ter­na­tional ge­o­graph­i­cal reach”, span­ning fur­ni­ture, food and cloth­ing, the com­pa­nies said.

As part of the pro­posed trans­ac­tion, Sho­prite is ex­pected to buy Stein­hoff’s African op­er­a­tions, which in­cludes Pep­kor Africa and Stein­build. Sho­prite will then is­sue new shares to Stein­hoff, giv­ing the lat­ter a sig­nif­i­cant stake in the en­larged Sho­prite.

The two com­pa­nies said their merger talks were ini­ti­ated by their big­gest share­hold­ers – bil­lion­aire busi­ness­man Christo Wiese, who owns 16 per­cent of Sho­prite and 18 per­cent of Stein­hoff, and the Pub­lic In­vest­ment Cor­po­ra­tion, South Africa’s largest pen­sion fund man­ager.

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