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