Steinhoff International and Shoprite Holdings have terminated their merger negotiations. This follows much criticism levelled at the deal by various parties, as well as Shoprite minority shareholders arguing that the transaction was not in their best interests. Under the proposed deal, Steinhoff would have sold its African assets to Shoprite in exchange for a controlling stake in the latter.
Pictured: Pieter Engelbrecht, Shoprite CEO
In a Sens announcement, Steinhoff said the decision was made to terminate the negotiations related to the proposed transaction as "the PIC, Titan and Steinhoff could not reach agreement on the exchange ratio that would apply to the Share Exchange".
Steinhoff further said:
"The Proposed Transaction was investigated and analysed by the respective management teams of Steinhoff and Shoprite, and although the Proposed Transaction presents exciting opportunities for the Companies and their respective management teams, the fact that the relevant parties could not reach an agreement in respect of the Share Exchange resulted in the negotiations being terminated."
