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Walmart to Book US$4.5bn Loss on Brazilian Sale
06/05/2018 - 12H27
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FINANCIAL TIMES
Walmart has sold a majority stake in its Brazilian business at an estimated US$4.5bn loss, marking the latest step in a strategic shift that has seen the US retailer become more of an investor than an operator in foreign markets.
In April, Walmart merged its UK-based grocer Asda with bigger rival J Sainsbury, in a deal that will give the US retailer a 42 per cent stake in the combined company. A few weeks later, Walmart revealed plans to buy a US$16bn stake in Flipkart in India, a key battleground with Amazon for the future of ecommerce.
The Arkansas company did not disclose the financial terms of the sale of an 80 per cent in Walmart Brazil to Advent, a São Paulo-based private equity group.
But Walmart said it would record a US$4.5bn non-cash loss in the second quarter, which it attributed to the declining value of Brazil's currency. It said its ultimate loss "could fluctuate significantly" if the exchange rate changes before the deal closes.
More:
https://www1.folha.uol.com.br/internacional/en/business/2018/06/1971001-walmart-to-book-us45bn-loss-on-brazilian-sale.shtml