FINANCE

Done deal for Walmart Brazil

BY Deena M. Amato-McCoy

Global private equity firm Advent International has acquired a majority stake in Walmart Brazil.

Under the terms of the agreement, the private equity firm now owns an 80% equity stake in Walmart Brazil. The discount giant has retained a 20% stake in the business. Walmart did not reveal the value of the deal.

Advent has a strong local presence and extensive experience in retail investment both in Brazil and internationally. Since 1997, the private equity fund has completed 75 investments in 22 countries.

When Walmart announced it was entering the deal in June, the discounter expected Advent to grow the division.

Walmart Brazil operates 438 stores throughout the country.

This is Walmart’s latest international deal. In April, the discount giant announced plans to sell its wholly-owned U.K. subsidiary, Asda Group Ltd., to J Sainsbury PLC in a deal valued at about $10 billion. Under the terms of the agreement, which is subject to various approvals, Walmart would hold a 42% share of the combined business.

In May, Walmart signed a definitive agreement to buy an initial stake of approximately 77% in Indian e-commerce firm Flipkart for $16 billion. Later that month, SoftBank Group Corp. said it would sell its roughly 20% stake in Flipkart to Walmart. While the company didn’t disclose terms of the sale, SoftBank’s investment in Flipkart was worth around $4 billion.

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