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Johannesburg, South Africa (AHN) – Massmart shareholders approved Monday the sale of 51 percent of its shares to U.S. retail giant Wal-Mart for $2.45 billion (ZAR 17 billion).

Wal-Mart offered in late November to purchase ordinary shares of Massmart for $21.47 (ZAR 148) per share. The offer is a 19.2 percent premium on the 30-day weighted average price on Sept. 23.

Massmart is a managed portfolio of nine wholesale and retail chains in Africa known for its high volume, low margin and low-cost distribution of branded consumer groups. It has 243 outlets in 14 sub-Saharan African countries. The group is the third largest distributor of consumer groups on the continent.

The Wal-Mart buy-in offer was opposed by unions in South Africa because of perceptions that the American retail chain is anti-union. The Congress of South African Trade Unions threatened to boycott the stores, claiming that Wal-Mart in its operations in other countries has not treated workers fairly.

Wal-Mart denied the union-busting charge and said it will respect contracts. When Wal-Mart made the offer to purchase controlling interest in Massmart, Wal-Mart International President and Chief Executive Officer Doug McMillon said in a statement, “this acquisition will allow us to bring to South Africa our significant experience in connecting small farmers with Wal-Mart’s global supply chain, boosting farmer income as well as helping them improve the quality of their produce. We hope to help South African suppliers grow their businesses, become more efficient, environmentally friendly and ultimately more competitive.”

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