Private equity firm Advent International announced plans Monday to take an 80 percent stake in Walmart's Brazilian business as the retailer continues efforts to reshape its global business.
Walmart has been retreating its efforts in some global regions while pushing more aggressively in others. Earlier this year, it announced plans to partially exit its stake in British grocer Asda by merging the business with J Sainsbury. It also announced a $16 billion acquisition of Indian e-commerce giant Flipkart.
"We're being thoughtful and deliberate as we assess our portfolio and make decisions about where and how we'll grow. We're continually reviewing our portfolio, and consistent with that, we're currently considering options for our business in Brazil," Walmart CFO Brett Biggs said in May.
The Bentonville, Arkansas-based retailer will retain the remaining 20 percent stake in Walmart Brazil and said it will lean on the private equity firm for its regional expertise.
"We believe that with our local market knowledge and retail expertise we can position the company to generate significant results and reach new levels of success in Brazil," Patrice Etlin, a managing partner at Advent, said in a statement.
The transaction is subject to approval from Brazillian regulators. The amount of the deal was not disclosed.
Walmart said it expects to take a noncash net loss of approximately $4.5 billion, largely due to currency fluctuations.