JD.com’s Hong Kong-listed shares fell 11% when markets opened on Wednesday 21 August 2024. Credit: Sergei Elagin/Shutterstock.

US-based multinational retailer Walmart has divested its stake in Chinese e-commerce company JD.com to raise $3.74bn, a term sheet seen by Reuters has revealed. 

The move is part of the US retailer’s strategy to concentrate on its own operations within China.  

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Walmart sold 144.5 million American depositary shares priced between $24.85 and $25.85.

The sale was brokered by investment banking company Morgan Stanley. 

Walmart was quoted by Reuters as saying: “This decision allows us to focus on our strong China operations for Walmart China and Sam’s Club, and deploy capital towards other priorities.” 

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Walmart, the largest shareholder in JD.com, committed to a continued commercial relationship with the e-commerce company. 

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The partnership between Walmart and JD.com began in 2016, with Walmart initially acquiring a 5% stake.  

The collaboration included JD.com taking over Walmart’s Yihaodian online marketplace.  

By the end of 2016, Walmart had increased its stake to 10.8%. The share sale marks the end of this strategic alliance. 

JD.com’s shares in Hong Kong saw a decline of more than 10% following the news, while its US-listed shares fell 10% in after-market trading.  

Despite a better-than-expected profit reported in August 2024, JD.com’s share price has significantly dropped since early 2021. 

Walmart’s China operations have shown robust performance, with a 17.7% year-on-year increase in revenue to $4.6bn in the second quarter of 2024. 

JD.com recently reported its net revenues for the second quarter of 2024 up by 1.2% to 291.4bn yuan ($140.1bn).