American retail giant Walmart sells most of its under-performing Brazilian branch to an investment group. The sale fits into a strategy to focus on growing markets.
Walmart started its Brazilian activities in 1995 and is currently number three on the biggest market in South America with 471 stores and a revenue of 6.68 billion dollars (5.7 billion euros). The retailer did however book a seventh straight loss in the country that is going through a severe recession. Because the future does not look bright, the American giant now sells 80 % of the shares to venture capital fund Advent International. The company retains an interest of 20 %.
The sale does not come as a surprise as Walmart struggles with its international activities and withdraws from markets with low growth prospects, so it can redirect resources to initiatives in growth markets such as China or India. The company left Japan and arranged a merger between its British subsidiary ASDA and Sainsbury's earlier this year . Thanks to that transaction, Walmart succeeded in buying Indian e-tailer Flipkart before rival Amazon could.