Steinhoff’s new deal softens miners’ blow
STOCKS ended lower yesterday, dragged down by mining shares as metal prices fell, but Steinhoff jumped after the furniture company unveiled a $5.7 billion (R62.5bn) deal to enter the apparel market.
The benchmark Top40 index was down 0.38 percent at 44 909.52 and the broader all share index was off 0.43 percent at 50 507.59.
surged 4.5 percent to R58.49, its biggest daily percentage gain in more than a year.
The no-frills furniture firm will buy clothing retailer Pepkor in a deal that gives exposure to Africa’s fastgrowing apparel market and strengthens its business in eastern Europe.
“It’s all about moving low-margin products in high volumes. Steinhoff already does that with furniture and Pepkor does that with clothing, footwear and household goods. This deal will add a new dimension to Steinhoff,” said Reuben Beelders, a portfolio manager at Gryphon Asset Management.
Overall, the stock market fell for a second straight day as falling commodities hit mining shares. Bourse heavyweight
was down 1.27 percent at R229.19 and rival lost 1.46 percent to R276.16.
plunged 11.23 percent to R191.50 after the fertiliser maker posted a 5 percent decline in firsthalf profit.