Walmart to buy out Massmart shareholders, delist owner of Makro, Game

• In a R6.4 billion deal, Walmart is offering to buy out minority shareholders of Massmart.
• The US retail giant says the company's turnaround plan will lead to more losses in the short term.
• Mitch Slape will step down as CEO at the end of the year.
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US retail giant Walmart plans to buy out shareholders in Massmart and delist the company, which owns Makro, Game and Builders Warehouse, from the JSE. Massmart shareholders will be offered R62 in cash. This is 53% higher than Massmart's closing share price on Friday. Walmart bought control of Massmart in 2010, which proved to be a disastrous deal. The value of its investment has slumped by 80% since then, as the retailer struggled in a weak economy with increased competition. In its half-year results, released on Monday morning, the company reported a large headline loss of more than R903 million, from a loss of R359 million in the same period last year. Sales grew almost 2% to R38.1 billion. The US giant said that it has had to provide "increasing levels of support" to Massmart, including R4 billion in liquidity during the 2020 lockdown, over recent years. Walmart converted half of the R4 billion loan into equity. Apart from Covid-19, the civil unrest in 2021 and flooding in KwaZulu-Natal earlier this year have compounded "weak consumer demand for general merchandise and an increasingly competitive operating environment", Walmart said. As part of its turnaround plan, the company plans to sell or close more of its non-core assets. While this will be crucial to the long-term strategy of Massmart, it will worsen losses in the short term and will require additional capital investment into the business, Walmart said. The development of its e-commerce strategy will also require significant additional financial investment, the company said. "The potential offer will enable Walmart to continue its overweight support as a long-term shareholder and allow eligible Massmart shareholders the opportunity to realise value now." “With an expected inflow of foreign direct investment estimated at R6.4 billion, this potential offer, if finalised, represents a positive vote of confidence in South Africa by the world’s leading retailer,” Walmart said. Massmart has established an independent board to review the terms of the offer. The independent board is advised by PricewaterhouseCoopers. Both PwC and the independent board have already considered the offer and conditions as "fair and reasonable", and will recommend the offer to the board. In addition, shareholders representing almost 25% of Massmart shares have been canvassed and support the offer. Massmart CEO Mitch Slape will step down from his role at the end of the year, with Jonathan Molapo becoming the new head of the company. Molapo was previously CEO of Astron Energy before joining Massmart last year.

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Woman in Oklahoma climbs through sunroof, rescues 2-year-olds left in hot car at Walmart

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A woman in Oklahoma climbed through the sunroof of a vehicle parked outside a Walmart this week to rescue two 2-year-olds left inside, according to reports. 

The vehicle was reportedly parked in direct sunlight during a 98-degree day.

Elizabeta Babb, 33, was arrested after she exited an Oklahoma City Walmart after shopping for over a half hour while her two toddlers were strapped in their car seats.

The 2-year-old girls were reportedly "unresponsive and buckled in their car seats" when they were found. 

FLORIDA CHILD DIES AFTER BEING LEFT IN A HOT CAR, 11TH IN US THIS YEAR: 'HORRIBLE — AND YET WE EXPECT IT'

A shopper leaves a Walmart store in Bradford, Pa., July 20, 2020.  (REUTERS/Brendan McDermid/File Photo)

"A retired police officer working security for Walmart stated the vehicle was hot to the touch, and she burned her hand as she attempted to make entry," Oklahoma police said, according to local reporting. 

TEXAS FATHER ARRESTED FOR ALLEGEDLY LEAVING 5 KIDS IN SWELTERING HOT CAR WITHOUT AIR CONDITIONING

An unidentified woman crawled through the open sunroof to rescue the girls as others in the parking lot attempted to open the car doors. 

A shopping cart outside a Walmart store in Torrance, Calif. May 15, 2022.  (Bing Guan/Bloomberg via Getty Images)

The children were reportedly in shock and crying after being taken from the vehicle and placed in a security vehicle with air conditioning.

According to local reports, Walmart officials called for the driver of the vehicle to come outside, but Babb did not exit the store until she checked out.

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Babb apparently told authorities she had been in the store for "five minutes."

But, according to surveillance footage, she was in the store 35 minutes.

Fox News could not immediately reach the Oklahoma City Police Department for comment. 

This article was written by Fox News staff.

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Walmart strikes streaming deal with Paramount

In this photo illustration, a woman's silhouette holds a smartphone with the Walmart logo displayed on the screen and in the background.

Rafael Henrique | Lightrocket | Getty Images

Walmart has reached a deal to offer Paramount Global's streaming service as a perk of its Walmart+ membership program, the companies confirmed on Monday.

Starting in September, customers who belong to the retailer's program will get free access to an ad-supported plan on Paramount+, which include movies and shows such as "Star Trek," "Paw Patrol," "The Godfather" and "SpongeBob Squarepants."

Walmart launched Walmart+ nearly two years ago to drive sales and deeper customer engagement. The program costs $98 per year, or $12.95 per month, and is the company's answer to Amazon Prime, but with a different set of perks. It includes free shipping of online purchases, free grocery deliveries for orders of at least $35 and discounts on prescriptions and gas.

Now it will also include access to the "essential tier" of Paramount+, which typically costs $4.99 per month and includes commercials. Paramount also sells a premium product without ads for $9.99 per month.

"With the addition of Paramount+, we are demonstrating our unique ability to help members save even more and live better by delivering entertainment for less, too," Chris Cracchiolo, general manager of Walmart+, said in a news release.

Walmart said in a news release on Monday that it has had positive membership growth every month since its launch in September 2020. But since launching the service, the retail giant has declined to share its subscriber total.

According to estimates by market research firm Consumer Intelligence Research Partners, Walmart+ had 11 million customers as of July — the same as in the April. A survey by equity research firm Morgan Stanley pegged the subscriber count higher at about 16 million members as of May.

Paramount+ is one of the many services that compete for eyeballs in the streaming industry. Paramount Global announced earlier this month that Paramount+ has 43.3 million subscribers around the world. The company aims to reach 100 million subscribers by 2024.

The deal with Walmart will give Paramount+ a new distribution channel to add subscribers as well as a branding boost. Paramount+ is the only streaming service that has struck a deal with Walmart and wanted to launch exclusively to get full marketing attention, according to a person familiar with the deal who was not authorized to speak publicly about it.

Jeff Shultz, chief strategy officer and chief business development officer of Paramount Streaming, said the two companies have worked closely together for years by selling consumer products in Walmart's stores.

The Wall Street Journal first reported the news of the deal.

Walmart will report its second-quarter earnings on Tuesday.

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