Walmart has announced that Brazilian private equity fund Advent International has agreed to invest in a majority stake, about 80%, in Walmart Brazil. While Walmart´s press release cites the reason for the deal is to “strengthen the business and position it for long-term success”, many are viewing the move as part of Walmart’s cleansing away of loss-making entities.
According to the agreement, Advent will hold 80% of Walmart Brazil, while Walmart Inc. retains the remaining 20% after the transaction is complete. The transaction is subject to regulatory approval in Brazil.
