Walmart has finalized its sale of a majority stake in the Seiyu supermarket chain in Japan.
In November 2020, Walmart announced its plans to reduce its presence in the Japanese retail market by selling a majority of its stake in the supermarket chain to KKR and Rakuten.
Under the terms of the transaction, KKR will own the largest percentage of the company at 65 percent, while Rakuten DX Solution, a Rakuten subsidiary, will own 20 percent. Walmart will retain a 15 percent stake in the company.
Arkansas Money & Politics reported in November 2020 that Seiyu would be sold for ¥172.5 billion, which is approximately $1.6 billion based on then-current exchange rates.
Following the transaction’s finalization, Seiyu shareholders appointed Tsueno Okubo as the CEO of the company. Okubo has previoiusly served in senior roles for Japanese supermarket chains, according to a Seiyu news release.
“I am thrilled to be joining Seiyu at such an important moment in its history. Together with KKR, Rakuten and Walmart, we have a tremendous opportunity to build on Seiyu’s achievements and stature in the market to take its business to the next level of success. Looking ahead, we are excited to accelerate Seiyu’s digital transformation to better meet the evolving shopping needs of our customers while continuing to expand on strong in-store presence in communities across Japan. I want to thank my predecessor, Lionel Desclée, for his leadership, and I look forward to working with our talented team of associates to build on Seiyu’s progress to become Japan’s leading omnichannel retailer,” Okubo said in a statement.
Walmart’s stock reached a high of $132.57 per share on Monday, after opening at $131.58. The stock had closed at $129.92 on Friday.
By the end of the day, the stock had dropped back to $131.37 per share.