# Massmart

Massmart Holdings Limited is a South African firm that owns local brands such as Game, Makro, Builder's Warehouse and CBW. It is the second-largest distributor of consumer goods in Africa, the largest retailer of general merchandise, liquor and home improvement equipment and wholesaler of basic foods. As of 31 October 2022, Massmart operated 411 stores in South Africa and 12 other Sub-Saharan countries. Its head offices are in the Massmart House in Sunninghill, Johannesburg.
The company has been owned by multinational retail corporation Walmart since 2011.

## History

Massmart was founded in 1990, beginning with the acquisition of six Makro stores. It listed on the JSE Limited on 4 July 2000 at R12.50 per share. Since its founding, Massmart has grown both organically and by acquisition. The firm acquisition history includes:
* 378 Shield members in March 1992
* 20 Dion stores in May 1993
* 14 CCW stores in June 1998
* 26 Game stores in July 1998
* 6 Jumbo stores in April 2001
* 22 Browns and Weirs stores in July 2002
* 8 Builders Warehouse stores in February 2003
* 3 De Lay Rey stores, 14 Servistar stores, and 34 Federated Timber stores in June 2005
* 6 Cambridge Food stores in December 2008
* 3 Buildrite stores in June 2009
* Fruitspot (wholesaler of fresh fruits and vegetables) was acquired in January 2012
* Rhino Cash & Carry Group in March 2012

## Divisions

Massmart's stores are organized into 4 divisions. The stores included in each division are as follows:
* Massdiscounters
** DionWired (Has been reported that the store has closed operation in South Africa)
** Game (operates in South Africa, Botswana, Ghana, Lesotho, Malawi, Mozambique, Namibia, Nigeria, Tanzania, Uganda, Zambia and Kenya - beginning May 2015)
* Masswarehouse
** Makro (operates in South Africa, two stores in Zimbabwe were sold in fiscal year 2011)
** The Fruitspot (operates in South Africa)
* Massbuild
** Builders Warehouse (operates in South Africa, Botswana, Zambia and Mozambique)
** Builders Express (operates in South Africa)
** Builders Trade Depot (operates in South Africa and Mozambique)
** Builders Superstore (operates in South Africa)
** Kangela (operates in Mozambique)
* Masscash
** CBW (operates in South Africa, Botswana, Lesotho, Mozambique, Namibia, and Eswatini)
** Jumbo Cash and Carry (operates in South Africa and Botswana)
** Trident (operates in Botswana)
** Cambridge Food (operates in South Africa)
** Shield (operates in South Africa, Botswana, Lesotho, Namibia, and Eswatini)

## Walmart acquisition

In November 2010, multinational retail corporation Walmart made a bid to acquire majority shareholding (51%), in Massmart. At that time, the offer was valued at approximately R17 billion (approximately US$2.54 billion or £1.54 billion). On 18 January 2011, Massmart shareholders voted in favour of Walmart's offer of R148 per share (or around $8 per share or ~£6.50 per share). The South African Competition Commission Tribunal gave its approval of the acquisition of 51% of the firm in May 2011. Shortly thereafter, in June 2011, Walmart completed the purchase of 51% of the company's stock.
In August the South African ministries of trade and industry, economic development and agriculture and fisheries lodged an appeal to the decision of the Competition Tribunal's decision to allow the merger with minimal conditions, this follows an appeal filed earlier by SACCAWU, a local labor union. In March 2012 the appeals court dismissed the case by the governmental ministries, but acknowledged that there were legitimate concerns about the effect of the deal on small producers and employment. The appeals court decision effectively put an end to the legal challenges to the merger.
In August 2022, Walmart made an offer to acquire the remaining non-controlling shares of Massmart, and by the end of November the scheme had been finalized and closed, making Massmart a wholly owned subsidiary of Walmart.

## Major shareholders

Below is the group's largest shareholders as at December 2016:$^{:25}$
| Majority shareholders | December 2016 (%) | December 2022 (%) |
| Walmart | 52.4 | 100.0 |
| Aberdeen Asset Management PLC | 21.3 | 0.0 |
| Public Investment Corporation (SA) | 5.6 | 0.0 |
| Others | 20.7 | 0.0 |