Walmart (WMT), the world’s largest retailer, is planning to purchase the remaining 47% of Massmart shares it does not already own, according to a Reuters report. Massmart is a leading retailer in the Sub-Saharan countries. Walmart boasts retail and wholesale businesses. It offers an assortment of merchandise and services at everyday low prices through its stores, Walmart.com and mobile apps.
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Massmart said the deal will help to ovehaul its operations and loss making business. According to the report, Walmart would pay 6.4B rand ($377.6M) for the block of shares. If approved by its shareholders, Massmart shares would be delisted from the JSE – Johannesburg Stock Exchange.
In pre-market action, WMT stock has lost just under 0.6%, at last check.
Is Walmart a Good Buy?
Wall Street is cautiously optimistic about Walmart stock. According to TipRanks, WMT is a Moderate Buy based on 16 Buys versus six Holds and no Sells. The average Walmart stock price prediction of $151.77 implies about 16% upside potential to current levels.
