Massmart wants 100% of Fruitspot
RETAILER NEWS
Business Report - Jul 12th 2011, 14:36
South African discount chain store Massmart , majority controlled by US giant retailer Wal-Mart , is looking to take over fruit and vegetable supplier The Fruitspot, a spokesman said on Tuesday.
“We have submitted an application to the Competition Commission in relation to a 100 percent acquisition of The Fruitspot,” Massmart's spokesman Brian Leroni told Reuters.
“The acquisition is consistent with our strategy to grow Massmart's fresh fruit and vegetables proposition to customers.”
If the transaction is approved, The Fruitspot will be housed under Massmart's Masswarehouse division, Leroni said, but declined to put a value on the deal.
Wal-Mart, the world's largest retailer, finalised a $2.4 billion purchase of 51 percent of discount retailer Massmart in June, after winning approval with minimal conditions from South Africa's competition authorities.
Under the conditions, Massmart must not cut jobs for two years, honour existing labour agreements and work to develop local suppliers. Unions had demanded strict targets on using local manufacturers.
Leroni said the bid had nothing to do with the conditions set out by the Competition Tribunal.
Johannesburg-based The Fruitspot supplies other retailers, including listed chain Spar , whose shares are down nearly 1 percent at 91.00 rand.
Massmart's shares are also weaker, having shed 0.6 percent at 10:53 SA time, after earlier sinking as low as 2.3 percent.
Related Retailers
 | MassmartThe Massmart Group comprises nine wholesale and retail chains, and one buying group - 288 stores and 470 buying Group members all focused on high-volume and low-cost distribution. They operate in 14 countries in sub-Saharan Africa through the Group...Click here to read more about Massmart |
| MassmartThe Massmart Group comprises nine wholesale and retail chains, and one buying group - 288 stores and 470 buying Group members all focused on high-volume and low-cost distribution. They operate in 14 countries in sub-Saharan Africa through the Group...Click here to read more about Massmart |
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