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Walmart Threatens To Bail On Massmart Investment

Posted on | May 16, 2011 | Comments Off

Walmart is threatening to bail on the possible 51% acquisition of Massmart, the South African retail company if the regulatory regime imposes conditions on the acquisition.  In my opinion, this is all posturing on the company in order to get the most favorable deal possible.

I believe that the approval will be given assuming a few conditions.  I think Walmart will accept the conditions as long as they are short term in nature.  Walmart’s strategy is longterm and a couple years of conditions doesn’t change their long-term game here.

Walmart has a bright future in South Africa.