Billionaire Wiese Faces Hurdles in Attempt to Combine Assets
- Negotiations underway to create Africa’s biggest retailer
- Deal may face opposition from minority investors, regulators
Christo Wiese, South Africa’s fourth-richest person with a fortune of about $5.7 billion, is at the center of plans to create the continent’s largest retailer by combining the African operations of Shoprite Holdings Ltd. and Steinhoff International Holdings N.V. Here’s why a transaction makes sense for the 75-year-old billionaire and why a deal may face opposition from minority shareholders and antitrust authorities.
The proposal is for Cape Town-based supermarket chain Shoprite to buy Steinhoff’s African retail assets in exchange for an undisclosed yet significant equity interest. This could lead to Steinhoff taking control of Shoprite via a buyout offer to minority shareholders. Talks on pricing and structure are ongoing and some investors and analysts expect the companies to announce an outcome in coming weeks.