Wal-Mart Stores Inc announced late on Wednesday that it would acquire stakes from its joint venture with a unit of conglomerate China Resources Corp for a combined 3.3 billion yuan ($517 million).
State-backed China Resources SZITIC Trust Co, which owned 35 percent stakes in 21 Wal-Mart Stores outlets around China, listed the stakes for sale in September, according to official postings from the firm on the Shanghai United Assets and Equity Exchange.
Upon the acquisition, China Resources SZITIC Trust Co would not own any shares in those stores, according to a press release Wal-Mart sent to the Global Times on Wednesday.
The completion of the deal still needs to get approval from Chinese authorities.
Wal-Mart holds full confidence in the Chinese market and the increasing investment in the market is expected to better serve local customers, Sean Clarke, president and CEO of Wal-Mart China, was quoted by the press release as saying.
The sale comes as Wal-Mart, the world's largest retailer, and other largely brick-and-mortar retailers face intense competition in China from fast-developing online rivals just as growth in the world's second-largest economy cools.
In a quarterly report issued 0n Tuesday, Wal-Mart said consolidated revenue in the third quarter ended on October 31 fell 1.3 percent to $117.4 billion, weighed down by international operations, which have been hurt by a stronger dollar.
It cited weakness in Brazil, China and the UK.
