The end of the affair
Why Shoprite is better off without Steinhoff
Why did Christo Wiese’s plan for a Shoprite-Steinhoff merger come a cropper for the second time, and will he eventually skin this cat?
Peeved by minority shareholders’ inability to see the value of merging Shoprite and Steinhoff, in both of which he owns big stakes, consummate dealmaker Christo Wiese is doubtless planning his next move. But why did his plan come a cropper for the second time, and will he eventually skin this cat? Christo Wiese, it seems, feels misunderstood. You can understand why the lawyer turned dealmaker may be sensitive. Two weeks ago, his plan to merge the African operations of the two blue chip retailers he chairs — Shoprite and Steinhoff — was abruptly scrapped. Analysts had billed it as Wiese’s “grand plan” — to create an African retail giant with sales of R200bn, profit of R15bn and 186,000 staff by merging two of the companies in which he owns large stakes. It would have neatened up the portfolio of Africa’s richest man (estimated wealth: US$5.8bn), pooling his interests under the Steinhoff banner. And because Steinhoff listed in Frankfurt last year, this would have put a large part of ...
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