U.S retailer Walmart Inc has agreed to sell most of Japanese supermarket chain Seiyu to investment firm KKR and e-commerce company Rakuten
Walmart Inc. (formerly Wal-Mart Stores, Inc.) is an American multinational retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores, headquartered in Bentonville, Arkansas.
The company was founded by Sam Walton in 1962 and incorporated on October 31, 1969.
It also owns and operates Sam’s Club retail warehouses.
The company operates under the name Walmart in the United States and Canada, as Walmart de México y Centroamérica in Mexico and Central America, as Asda in the United Kingdom, as the Seiyu Group in Japan, and as Flipkart Wholesale in India.
Seiyu became Walmart’s group company in 2008.
Founded in 1963, Seiyu has more than 300 stores across Japan employing more than 34,000 people.
With fiscal year 2020 revenue of $524 billion, Walmart employs more than 2.2 million “associates,” as its workers are called, worldwide.
In the U.S., Walmart’s online sales have been thriving during the pandemic but is still running a distant second to Amazon in that sector.
Walmart is selling off 85% of its wholly owned Japanese supermarket subsidiary Seiyu
KKR & Co., a global investment firm, will purchase a 65% stake, while Japanese online retailer Rakuten will acquire a 20% stake from Walmart
KKR and Rakuten will bring their expertise in e-commerce and global digital marketing to strengthen Seiyu in the increasingly digital shopping age, Company said in a statement.
Appointment of CEO
A board will be set up, made up representatives from KKR, Rakuten and Walmart, and a new CEO will be appointed
The transaction, subject to regulatory approval, is expected to close in the first quarter of 2021.