Report: Wal-Mart unit seeks 67% stake in Kenyan chain
Bentonville, Ark. -- Wal-Mart’s South African subsidiary Massmart Holdings Ltd reportedly seeks a 67% ownership stake in Kenyan retail chain Naivas Supermarkets Ltd. According to Bloomberg, which on Monday reported Naivas was one of several possible Kenyan chains eyed by Massmart for possible expansion, serious talks with Naivas have occurred.
Bloomberg quotes a Naivas executive as saying talks have been occurring on and off for about a year and half and broke off in April 2013 due to disagreements on a purchase price. Massmart’s interest in acquiring Naivas have also reportedly caused disagreement among investors in the family-owned chain about whether they should sell their shares or not.
Wal-Mart has acknowledged a general interest in expanding into Kenya but declined to comment on any specific companies it may be interested in buying.