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KEY TAKEAWAYS
- U.S.-listed shares of JD.com tumbled Wednesday as Walmart confirmed that it sold its stake in the Chinese e-commerce giant.
- The sale allows Walmart “to focus on our strong China operations for Walmart China and Sam’s Club, and deploy capital towards other priorities.”
- Bloomberg reported that Walmart raised about $3.6 billion in the stake sale, which marks the unwinding of an eight-year partnership.
U.S.-listed shares of JD.com (JD) tumbled Wednesday as Walmart (WMT) confirmed that it sold its stake in the Chinese e-commerce giant.
“JD has been a valued partner to us over the past 8 years, and we are committed to a continued commercial relationship with them,” a Walmart spokesperson said in a statement to Investopedia, adding that the sale allows the retailer to “focus on our strong China operations for Walmart China and Sam’s Club, and deploy capital towards other priorities.”
Walmart Sale Marks Unwinding of 8-Year Partnership
Bloomberg reported that Walmart raised about $3.6 billion in the stake sale, which marks the unwinding of an eight-year partnership and comes after the Chinese company last week surprised investors by posting a near doubling of its quarterly profits.
JD.com American depositary receipts (ADRs) were down about 6% to $26.40 as of 10:15 a.m. ET Wednesday. Walmart shares are up less than 1%.