Walmart discussing $4.2B deal in S. Africa

JOHANNESBURG, South Africa, Sept. 27 (UPI) -- U.S. retail giant Walmart is discussing a deal to buy South African retailer Massmart for $4.2 billion the firm said Monday.

Retailer Massmart is the third-largest retailer in South Africa, The Guardian reported.

Andy Bond, chairman of British supermarket chain Asda, which Walmart bought in 1999, said, "South Africa presents a compelling growth opportunity for Walmart and offers a platform for grown and expansion in other African countries."

Massmart operates 290 stores in 12 countries, all but 24 of them in South Africa. The other countries with Massmart stores are Botswana, Zimbabwe, Tanzania, Nigeria and Ghana, the newspaper said.

Walmart, by contrast, operates 8,500 stores under various names in 15 countries. About half of its outlets are in the United States.

Walmart posted a profit of $3.3 billion in the first quarter of 2010.