praag.co.uk

JOHANNESBURG (Reuters) - Wal-Mart Stores Inc, has made a formal bid to pay $2.1 billion for control of South Africa's Massmart, a deal that would give the world's largest retailer a major foothold in fast-growing Africa.

The two companies said in a statement on Monday Wal-Mart would pay 148 rand for a 51 percent stake in the South African discount retailer, valuing the deal at 15.2 billion rand, according to Reuters calculations.

Wal-Mart said in September it was looking to buy up to all of the South African retailer, but scaled the bid back to more than 50 percent last month.

By taking 51 percent of Massmart, Wal-Mart will gain control of the firm and keep it listed in Johannesburg, which may have been critical to gaining regulatory approval.

South Africa's government last year scuppered a $24 billion tie-up between local telecom MTN Group and India's Bharti Airtel, due to concern that MTN would lose its local listing.

The deal will also likely put Wal-Mart, which has long battled with organised labour in the United States, up against South Africa's powerful trade unions.

The deputy general secretary of the South African Commercial, Catering and Allied Workers Union (SACCAWU) said this month he could not rule out the possibility of a strike if the deal went through.

The two companies said Wal-Mart has received "irrevocable undertakings" from institutional shareholders holding 35.2 percent of Massmart shares that they would vote in favour of the deal.

In addition it has received non-binding letters of support from shareholders holding about 15 percent of Massmart's shares.