Walmart sells majority stake in Japanese supermarket chain Seiyu

Walmart completed the sale of 85% of its stake in Seiyu to private equity group KKR and Japanese ecommerce giant Rakuten, with the American retailer set to retain 15% of the remaining shares. 

KKR will become the majority shareholder, having bought 65% of Walmart’s stake, with Rakuten taking 20% of Seiyu, which operates more than 300 supermarkets across Japan and employs more than 35,000 people. 

In a statement on the deal, Walmart said it expected to incur a non-cash loss of around $2bn in its fourth quarter as a result of the disposal. 

Head of Walmart International Judith McKenna said in a statement: “We have been proud investors in this business over the past 18 years and we are excited about its future under the new ownership structure.”

The retailer said it expected to complete the sale in the first quarter of 2021. 

Walmart first took a minority stake in Seiyu in 2002 and, after fully acquiring the grocer in 2008, became the first internationally based company to own a Japanese retailer. 

This is the latest in a string of recent deals that have seen Walmart look to divest from many of its international businesses to focus more on its core companies in the US. 

Last month, Walmart agreed the sale of a majority stake in UK grocer Asda for $6.8bn. The retailer also announced this month that it is looking to sell its Argentinian businesses. 

Alongside its core businesses at home, Walmart is also looking to focus more on international growth opportunities in key markets such as China and India. 

Walmart is set to unveil its quarterly earnings figures tomorrow, with analysts forecasting its like-for-like sales will have grown 4% as shoppers in the US have flocked to its superstores for food and other essential retail products during the coronavirus pandemic.