Walmart is selling an 85% stake in Japanese supermarket chain Seiyu. Private equity firm KKR will buy 65% of the stake in a $1.6b deal, and local e-commerce company Rakuten will buy 20%. The deal comes after Walmart sold its controlling stake in the U.K.’s Asda and its smaller business operations in Argentina - all within the last two months.
- Walmart was the first overseas retailer to buy a controlling stake in a Japanese retailer when it purchased a stake in Seiyu in 2002. The company bought Seiyu entirely in 2007 with an overall spend of more than $2b.
- Seiyu currently has around 320 stores and 34,000 employees.
- Walmart said that its Asda sale for $8.8b would result in an after-tax loss of $2.5b, and its Argentina operations sale would result in an after-tax loss of $1b.
- By retreating from less profitable markets, Walmart is set to focus on e-commerce and high-growth markets, including China, India, and the U.S, which contributes to over 75% of its revenue.