“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