(KFSM) — Private equity group Advent is reportedly in talks to acquire a 50% stake of Wal-Mart’s holdings in Brazil, according to news reports in that country. The retail giant has struggled to win market share in the highly competitive market of Brazil, ranking third after continued investment, several management changes and attempts at restructuring.
Reuters also reports Wall-Mart is being advised by Goldman Sachs who is helping the retailer sort through the possibilities with at least two other firms are also interested in Wal-Mart’s holdings.
Wal-Mart operates 485 stores (including Sam’s Clubs) in Brazil since first investing there in 1995, according to its website. As recent as October, Wal-Mart said it was pouring $316 million in Brazil through fiscal year 2019 to update about 120 of its stores under the banners Hypermarket Bompreco and BIG. To date, about 25% of that work has been completed, according to Walmart International.
The move to sell comes as no surprise. Talk Business & Politics previously reported the issues and lack of growth in Brazil over the past 22 years. Wal-Mart Stores CEO Doug McMillon told investors in October 2016 the company was evaluating its international holdings and there would be instances of restructuring, investments and in some cases pulling out of markets and areas not core to the company’s overall success.
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