Walmart Sells Stake in JD.com
- Walmart divests its entire stake in Chinese e-commerce giant JD.com.
- JD.com experiences a 10% loss in Hong Kong following Walmart's confirmation of the stake sale.
- The move allows Walmart to focus on strengthening its operations in China and reallocating capital to other priorities.
Walmart has announced the complete divestment of its stake in JD.com, a major player in China's e-commerce sector, marking a significant shift in its investment strategy. The retail giant stated that this decision will enable it to concentrate on its operations in China, particularly Walmart China and Sam's Club, while reallocating capital to other priorities. Despite the sale, Walmart emphasized its commitment to maintaining a commercial relationship with JD.com, which it has partnered with since 2016. In a recent filing, Walmart confirmed that it no longer holds any shares in JD.com, having previously owned approximately 9.4% of the company, equating to over 289 million shares as of March 31. The announcement led to a notable decline in JD.com's stock, which fell nearly 9% on the Hong Kong stock exchange following the news. Walmart did not disclose the specifics of the sale, including the number of shares sold or the total amount raised, although reports suggest it could be around $3.6 billion. Walmart's initial investment in JD.com began in 2016 when it sold its Yihaodian website to the company and acquired a 5% stake. This strategic alliance was part of Walmart's efforts to strengthen its presence in the competitive Chinese market, which is dominated by JD.com and Alibaba. The recent divestment signals a new direction for Walmart as it seeks to enhance its focus on its core operations in China.