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Walmart said to raise US$3.6 billion from sale of JD.com stake, ending 8-year partnership
- The deal comes as a property crisis, market volatility and uncertain job prospects take a toll on consumption in mainland China
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![Walmart’s share sale would mark the end of its partnership with JD.com that started in 2016. Photo: Reuters](https://cdn.i-scmp.com/sites/default/files/styles/1020x680/public/d8/images/canvas/2024/08/21/6119a565-10fd-468c-80fb-27cfba319aa6_94d955df.jpg?itok=x7mJETZ7&v=1724221462)
Walmart is raising about US$3.6 billion by selling its stake in e-commerce firm JD.com, winding down an eight-year partnership that appears to be paying diminishing returns amid a challenging landscape for Chinese tech giants.
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The US retailing giant sold 144.5 million shares for US$24.95 apiece, according to people familiar with the matter, who asked not to be identified because the information is private. That is a discount of 11 per cent to Tuesday’s close in the US, according to Bloomberg calculations and near the lower end of an indicative US$24.85 to US$25.85 price range.
Morgan Stanley is the broker-dealer handling the JD.com offering, according to people familiar with the situation. JD.com also bought back US$390 million worth of its shares on Wednesday.
JD.com’s Hong Kong-listed shares fell 10 per cent to HK$101.10 at 2.23pm local time on Wednesday, leading a broader sell-off in Chinese e-commerce and tech stocks.
Walmart is refining its strategy in the world’s second-largest economy, where its long-standing e-commerce partner is struggling along with major rivals Alibaba Group Holding and PDD Holdings, owner of Pinduoduo and Temu. Alibaba owns the South China Morning Post.
![JD.com has been engaged in an escalating price war in China with major e-commerce rivals, including Alibaba Group Holding and budget retailer Pinduoduo. Photo: Shutterstock JD.com has been engaged in an escalating price war in China with major e-commerce rivals, including Alibaba Group Holding and budget retailer Pinduoduo. Photo: Shutterstock](https://img.i-scmp.com/cdn-cgi/image/fit=contain,width=1024,format=auto/sites/default/files/d8/images/canvas/2024/08/21/d8feeeb5-8804-4186-985e-f65bfc453959_6bab06af.jpg)
The US firm has built a mature e-commerce and delivery system in mainland China for both Sam’s Club and its hypermarkets business, and is focusing on its own offerings, a person familiar with the matter said, speaking on condition of anonymity.
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