THE WHAT? Walmart has announced the sale of its Argentinian arm to Grupo de Narvaez. The sale will see the US discounter discontinue operations in the South American nation for good after a 25-year run.
THE DETAILS Terms of the deal were not disclosed. Walmart said that it would continue to support the business through transition services and sourcing agreements but will not retain an equity stake.
Judith McKenna, President and Chief Executive Officer of Walmart International, said, “We are very proud of our Argentina business and associates as they’ve led and shown resilience throughout this year serving customers when they needed them most. We are excited by the local retail expertise the new owners bring to this already strong business, and we believe this deal creates the right structure to help it truly flourish for many years.”
THE WHY? Walmart said that the new ownership, which has retail operations in Argentina, Ecuador and Uruguay, brings strong local expertise that will position the business to thrive. The sale is indicative of the wider exodus of multinationals from the South American nation as business conditions worsen thanks to currency controls and price freezes, says Bloomberg.