By  on May 18, 2018

Walmart Inc. isn't finished reshaping its global portfolio.Following last week's $16 billion deal to acquire a majority stake in Indian e-commerce company Flipkart and the retailer's agreement to merge its Asda subsidiary in the U.K. with Sainsbury's Plc, Walmart on Thursday said it now is turning to its Brazilian operation. Brett Biggs, executive vice president and chief financial officer, said the retailer is putting its long-struggling Brazil business into play."We’re continually reviewing our portfolio and consistent with that, we’re currently considering options for our business in Brazil," he said.This isn't the first time Walmart has tried shopping a major stake in the business, however, which could be a tough sell, since stores opened during Brazil's economic boom were located in less desirable locations.The company began its Brazil business in 1995 and operates 465 stores under the banners Sam's Club, Walmart, Big, Bompreco, Hiper Bompreco, Magazine, Maxxi, Mercadorama, Nacional, Hiper TodoDia, Supermercado TodoDia, TodoDia and Posto. Walmart's operating losses started in 2009. The stores generated about $9.4 billion in revenue in 2016, but have struggled to turn a net profit. Advent International apparently was close to acquiring 50 percent of the Brazil business, but Walmart may be having trouble unloading Brazil, as it reportedly owes up to $3 billion in back taxes to state governments, according to Reuters.

Its international approach seems to be the borrow-from-Peter-to-pay-Paul philosophy, with the sales of Asda reportedly financing its Flipkart investment. There's also the pending sale of its Canadian bank.

To continue reading this article...

load comments
blog comments powered by Disqus