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BENTONVILLE, ARK. — Wal-Mart Stores, Inc. has made a preliminary proposal to acquire South Africa-based retailer Massmart. Under the terms of the non-binding proposal, Wal-Mart Stores would acquire Massmart Holdings Ltd. for ZAR148 (approximately $21 US) per share.

Headquartered in Johannesburg, Massmart has 288 stores in 14 countries in sub-Saharan Africa, with a majority of them located in South Africa. The retailer is the third largest distributor of consumer goods in Africa; the leading retailer of general merchandise, liquor and home improvement supplies; and the leading wholesaler of basic foods. It manages eight wholesale and retail chains that operate under a variety of names. Massmart currently has a market capitalization of ZAR 27.2 billion and 201.5 million ordinary shares, approximately 72 percent of which are foreign owned.

The deal is subject to a number of conditions including due diligence and a period of reciprocal exclusivity granted by each company.

— Coleman Wood

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