Massmart May Ditch Zimbabwe Over Black Ownership

“Should the indigenisation act be implemented in its current format, Massmart will have to reconsider its position in Zimbabwe,” Grant Pattison, Massmart’s chief executive officer, told Reuters in a telephone interview.

Zimbabwe’s government published regulations earlier this year that would force foreign-owned firms to sell 51 percent of their shares to to black Zimbabweans, a move that spooked investors.

Massmart, South Africa’s third-largest retailer by value, runs two of its Makro discount stores in Zimbabwe, but does not consolidate them into its financial results.

Wal-Mart is in exclusive talks to buy Massmart, a $4 billion deal that would give the U.S. retailer a big presence in fast-growing Africa and boost its emerging markets strategy. Reuters