U.S. retail behemoth Walmart has divested its complete stake in JD.com, a major player in China’s e-commerce landscape, unraveling one of the most substantial investments by a foreign competitor in a Chinese retail giant.
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As reported, both JD.com and Alibaba reported sales last quarter that missed expectations, with both companies offering an increased focus on discounts and lower-priced goods as Chinese shoppers grow more cautious about spending.
While precise details regarding the volume of shares sold and the proceeds generated from the transaction were not disclosed by Walmart, the company indicated that it no longer retained any shares in JD.com.
As of December 31, Walmart held approximately 289 million shares in JD.com, with JD.com’s annual report in April confirming Walmart’s status as a 9.4 percent shareholder.
Earlier reports from Bloomberg suggested that Walmart reaped around USD3.6 billion from the sale, a move that reverberated in the market as JD.com’s shares listed in Hong Kong plummeted by nearly 9 percent on Wednesday.
This divestiture concludes a chapter in Walmart’s strategic investment saga driven by the urgent need to establish a stronger presence in the Chinese market.
In 2016, Walmart relinquished its Yihaodian website to JD.com, a move that aligned with JD.com and Alibaba’s dominance in China’s online retail sector, while also acquiring a 5 percent stake in JD.com.
The collaboration between JD.com and Walmart spawned several joint initiatives, including the launch of an exclusive Sam’s Club flagship store, offering millions of consumers access to premium products with JD.com’s swift delivery services.
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The partnership also led to a Walmart Global store on JD Worldwide, JD.com’s cross-border platform, and the introduction of a two-hour delivery service from Walmart stores in certain cities.