Steinhoff 'terminates negotiations' with Shoprite over merger
Shoprite’s share price jumped 7% and Steinhoff’s 6% after the retailers called off their proposed merger
The share prices of Shoprite and Steinhoff both jumped 7% on Monday morning after they called off their proposal to merge into Retail Africa. Retail tycoon Christo Wiese, who owns 23% of Steinhoff and 16% of Shoprite via his holding company Titan, was the key proponent of the merger. He appears to have failed to convince minority shareholders of the merits of combining the two. “Shareholders of the companies are hereby informed that the companies have decided to terminate their negotiations related to the proposed transaction as the PIC (Public Investment Corporation), Titan and Steinhoff could not reach agreement on the exchange ratio that would apply to the share exchange,” it was noted in the statement. In November 2014, when Wiese moved the retail chain he built his initial fortune on — Pep Stores — from his private-equity investment group Brait to Steinhoff, the move was widely seen as a precursor to having Steinhoff acquire Shoprite. In December, Steinhoff and Shoprite announc...
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