Markets and investing

Did Shoprite shareholders get a raw deal?

Creating the largest retailer in Africa

Steinhoff and Shoprite recently announced a deal to merge to form an African retail giant. Share prices of both firms fell 10.9% and 7.7% respectively on the day of the announcement and Shoprite has lost a further 6.2% since. Analysts are now questioning whether the deal is worth it for Shoprite shareholders.

China is planning to invest up to $40 billion in Nigeria. This is in addition to an estimated $45 billion that has already gone into various projects primarily infrastructure development. At the same time, Nigeria has severed diplomatic ties with Taiwan.

Kenya’s stock market plunged to eight-year lows as large cap stocks headed south. The country’s currency is also on a downward trend hitting levels last seen in 2015.

The former regional heads for Africa at private equity giants KKR and Carlyle are setting up an investment firm, Arkana Partners, to target local equity investments of up to $100 million.