Wal-mart makes $4 billion offer for Massmart, a South African company. Such a deal would give Wal-mart a strong presence in Africa's fast growing economy. In recent times, Walmart has been affected by the U.S. slowdown with low income shoppers being vulnerable to unemployment and high gas prices.
Africa's growing middle class and fast growing economy would give Wal-Mart an incredible opportunity to capitalize on this international market. "Massmart is a very good fit with their business," said Bryan Roberts, from firm Planet Retail in London.
Other strong players could also be looking to acquire mass retailers in Africa. Walmart's bid is of 148 rand per Massmart share for a total value of US$4.1 billion. Shares of Massmart jumped over 11 percent on the news.
