Reportedly, Walmart Stores, Inc. (WMT) is parting away with its Argentina business, which started in 1995, to local investor Grupo de Narvaez, that runs food, clothing, and consumer goods retail businesses in Latin American countries. The value of the transaction was not known, but Walmart to record a non-cash loss of about $1 billion after-tax, mainly driven by currency losses.
Walmart currently employs over 9,000 workers in the country, the sale is part of Walmart Chief Executive Officer Doug McMillon’s strategy to reshape the retailer’s portfolio of international assets.
Walmart’s exit comes after Alberto Fernandez, Argentina President led government increased currency controls and temporarily fixed prices on consumer items including food and beverages to mobile phone plans and internet service. He additionally made it illegal for companies to fire workers on the payroll and doubled workers’ severance pay if firms leave, close, or negotiate a resignation.
Walmart Stores, Inc. (WMT) is a worldwide retailer that operates in various formats. The three segments of the company include Walmart U.S., Walmart International, and Sam’s Club. The company is comprised of discount stores, supermarkets, supercenters, hypermarkets, warehouse clubs, cash and carry stores, home improvement stores, specialty electronics stores, apparel stores, drug stores, convenience stores, and membership-only warehouse clubs; and retail Websites. To learn more about Walmart (WMT) and to continue to track its progress please visit the Vista Partners Walmart Coverage Page.
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