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.
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.
