In 2021 Shoprite made a decision to acquire Massmarts non-core assets in a bid to improve its low-price position in the market. “Shoprite said the transaction comprised 56 Cambridge Food businesses and Rhino Cash and Carry business, including 43 adjacent liquor stores, the Fruitspot business and Massfresh Meat business with a total of four facilities, and 12 Masscash Cash and Carry stores” please explain in detail whether the above transaction was a merger or acquisition and how would this particular transaction benefit Shoprite (20 Marks)

Answer rating: 100% (QA)

The transaction described above is an acquisition not a merger In an acquisition one company in this case Shoprite purchases another companys assets or a controlling stake in that company effectively ... View the full answer