Shoprite “It’s aliiiiive!”… fzzzt... beeeeeeeeeeeeeeeeeeeep.
So Shopstein has lurched off the table and into the cold storage of history. The deal hinged as you know on an exchange of shares between parties, as follows: Shoprite were going to acquire the African retail assets of Steinhoff, including Pep, Ackermans, the Speciality Group, including Shoe City, John Craig, Refinery and Dunns, and the Pep and Ackermans African operations, making payment to Steinhoff in shares. The value of the transaction would be negotiated “taking into account the best interests of both Steinhoff and Shoprite shareholders.” Well, as it turns out, Steinhoff (read Oom Christo Wiese) and its biggest shareholders could not agree on an exchange ratio for the shares which were to change hands, and the deal is off, leaving Oom C. one presumes, to moodily throw a whole bunch of cash into a battered carry-on and go shopping in London instead.
Comment: We’re a little torn. The deal would have given the combined entity the scale to be a major global player, but on the other hand, too much retail consolidation is not good for us back here in the Beloved Country.