Walmart to sell JD stake

Walmart is poised to raise up to $3.74 billion by selling its 5.19% stake in Chinese e-commerce firm JD.com, offering 144.5 million shares at a price range of $24.85 to $25.85. This move comes as Walmart aims to focus on its operations in China, particularly Walmart China and Sam's Club, while also deploying capital towards other priorities. The share sale, which carries an 11% discount from JD.com's prior closing price, has led to a significant drop in JD.com's shares, which fell over 10% in early trading. Walmart has been a partner of JD.com since 2016, when it acquired its stake after selling its online grocery store, Yihaodian. Despite JD.com reporting better-than-expected profits recently, the company has faced a 70% decline in share price since its peak in early 2021 due to sluggish consumer confidence in China's retail market. Analysts suggest that this decision underscores Walmart's strategy to concentrate on its own business in the competitive Chinese market.