Steinhoff 'terminates negotiations' with Shoprite over merger

Shoprite’s share price jumped 7% and Steinhoff’s 6% after the retailers called off their proposed merger.

“Shareholders of the companies are hereby informed that the companies have decided to terminate their 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,” the statement said.

Titan is the investment through which retail tycoon Christo Wiese holds shares in the grocery and furniture groups.

“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.”