Walmart China partner sells out
In this article (4)
Walmart China’s local business partner wants out of its joint venture.
State-backed China Resources Group has put the minority interests it has in 21 Walmart China stores on the market, seeking US$525 million. Most of the interests equate to about 35 per cent of the respective stores.
China-based spokesman for Wal-Mart David Fu confirmed the sale in an email to Reuters. He said the firm respected the “investment decision” of its partner.
“Wal-Mart believes that the transfer of minority interest will not influence Wal-Mart’s operation and development in China,” he said.
The affected stores are located in various parts of China, including the western Sichuan province and the capital city Beijing.
Questions & Answers
Q.Which partner is selling its stake in Walmart China?
Which partner is selling its stake in Walmart China?
State-backed China Resources Group, Walmart China's local business partner, is selling its minority interests in 21 stores. They are seeking US$525 million for these stakes, which typically represent about 35 per cent of each store.
Q.How many stores are affected by this sale?
How many stores are affected by this sale?
The sale involves minority interests in 21 Walmart China stores. These stores are located in various regions, including Sichuan province and the capital city Beijing.
Q.Will this sale impact Walmart's operations in China?
Will this sale impact Walmart's operations in China?
Walmart's China spokesman, David Fu, stated that the firm believes the transfer of minority interest will not influence Walmart’s operation and development in China. He added that Walmart respects its partner's investment decision.