NEWS ANALYSIS: Steinhoff aims for African champion
Christo Wiese’s determination to consolidate his retail holdings in one entity and the Public Investment Corporation’s affection for the notion of an African retail champion are behind plans for Steinhoff Africa to acquire a controlling stake in Shoprite, analysts say. But the proposed deal, which would create a powerful retail player, might struggle to get competition approval. The Competition Commission’s growing concern about the consolidation of power in the economy could significantly delay the finalisation of the deal. Shoprite is one of the big four grocery retailers being investigated by the commission’s inquiry into the sector. Shoprite’s shares fell more than 5% to below R200 on Monday in response to Steinhoff’s announcement on Friday. They recovered part of the loss before Monday’s close and on Tuesday, traded slightly above R200. By then, the Shoprite shareholders also had to contemplate a hefty R1.7bn cash payout to former CEO Whitey Basson. The repurchase of 8.7-millio...
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