Another stock of ours making an announcement on Friday was Steinhoff. Sorry, Steinhoff International, that is their "new" name. The stock has not been listed for a year yet on the Frankfurt stock exchange, in December it will be a year. Since all the various deals have been announced, the stock really has come under pressure, down nearly one-quarter of their market cap in Euros. They are paying a heavy price for the Mattress Firm (2.4 billion Dollars) and gobbled up Poundland. The strategy is simple, the company will continue to do deals at the value end of the market (for the consumers) and create a global retail titan. Marcus Jooste will continue to be aggressive, with the backing of their biggest shareholder and chairman, Christo Wiese.
This time the deal was Down Under, Bloomberg reports: Steinhoff Agrees to Buy Australia's Fantastic for $275 Million. Fantastic? What an original name. Relative to their market cap, again, this is not big nor is it small. 1.23 percent of the market cap of the entire business. Basically, this business that Steinhoff is buying is bigger than the market cap of Spur, or Clover. Expect more of the same from Steinhoff.