Walmart Sells $3.6B Stake in JD.com, Ends Eight-Year Partnership

21 Aug, 2024

Walmart Sells $3.6B Stake in JD.com, Ends Eight-Year Partnership

Walmart Inc. (WMT) raised approximately $3.6 billion by selling its stake in JD.com Inc. (JD, 9618.HK), marking the end of an eight-year partnership. Walmart sold 144.5 million shares at $24.95 each, a discount of 11% from Tuesday’s closing price, and near the lower end of the $24.85 to $25.85 price range. JD.com’s Hong Kong-listed shares fell by up to 12% following the sale, contributing to a broader decline in Chinese e-commerce and tech stocks.

The divestment reflects Walmart’s shift in strategy within the challenging Chinese market, where JD.com faces difficulties alongside rivals like Alibaba Group Holding Ltd. (BABA, 9988.HK) and PDD Holdings Inc. (PDD). Walmart is focusing on enhancing its own e-commerce and delivery systems for Sam’s Club and its hypermarkets in China, amid a backdrop of economic challenges including a property crisis and market volatility.

Walmart plans to use the funds from the sale to support its growth in China, particularly its Sam’s Club franchise, which has shown strong performance. The retailer will continue collaborating with JD.com, which it describes as a valuable partner. The sale also allows Walmart to allocate resources to other strategic priorities and expand its own store network.