South Africa's Shoprite to buy Metcash franchise unit

Africa's biggest grocer Shoprite has agreed to buy the franchise unit of unlisted South African rival Metcash Trading for an undisclosed amount, the two companies said in a joint statement on Tuesday.

Metcash's franchise unit operates supermarket chains such as Friendly, Seven Eleven and Price Club Discount across South Africa.

"The transaction will provide (Shoprite) with a further platform to grow its business and franchisees exponentially, both in numbers and in turnover," Shoprite deputy managing director Carel Goosen said in the statement.