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.  

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." 

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

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).