Asda parent makes move into Africa

Wal-Mart is in exclusive talks to buy Johannesburg-based Massmart, South Africa's third biggest quoted retailer, which also has stores in Ghana, Nigeria and Tanzania.

The deal comes under Mr Bond's remit as Wal-Mart's Vice President for the UK and Africa.

Massmart is the leading African retailer of general merchandise, home improvement equipment and basic foods.

The company runs 290 stores in 13 countries in Africa, with the vast majority of its stores in South Africa.

Commenting on the deal, Mr Bond said: "South Africa presents a compelling growth opportunity for Wal-Mart and offers a platform for growth and expansion in other African countries.

"South Africa possesses attractive market dynamics, favourable demographic trends and a growing economy."

He added that Wal-Mart is fully aware and supportive of Massmart's broad based Black Economic Empowerment (BEE) program.

"If the transaction is completed, we expect to continue and build on these efforts, working diligently with appropriate parties to grow skills and socio-economic development, and to be a corporate and retail role model," he said.

Mr Bond stood down as chief executive of Leeds-based Asda in May, to be replaced by Andy Clarke.

He is understood to have led the negotiations with the South Africans.

He stepped down from the chief executive's job after a period of tough trading for the group. He is now Asda's part-time chairman and also works on Wal-Mart projects

The acquisition, assuming it goes ahead, will be Wal-Mart's biggest takeover since it bought Asda ten years ago.

Doug McMillon, president and CEO of Wal-Mart International, said of the Massmart deal: "Wal-Mart's mission is to save people money so that they can live better lives.

"We believe this proposed acquisition is a great opportunity to deliver on that mission for all the people in the regions of the African continent where Massmart currently operates."

He added that Wal-Mart will respect and honour pre-existing union relationships and is committed to abiding by South African labour laws.

Wal-Mart has more than 8,500 retail units under 55 different banners in 15 countries. It employs more than two million staff worldwide.