Walmart’s Mexican subsidiary makes move to reduce footprint
Walmart Mexico operations in Honduras, El Salvador and Nicaragua are being evaluated for possible joint ventures, strategic partnerships or perhaps sale as the retailer seeks to focus efforts on operations in Mexico, Costa Rica and Guatemala.
All of Walmart’s Mexican and Central American retail businesses come under Walmex, a subsidiary that trades publicly in Mexico. Walmex told shareholders its plans to seek opportunities to downsize its business exposure in Honduras, El Salvador and Nicaragua.
“All of our operations in Central America are strong businesses with a differentiated customer value proposition, world-class and well-invested infrastructure, a significant growth runway and strong fundamentals,” said Guilherme Loureiro, CEO of Walmart de México y Centroamérica. “As we seek to prioritize our resources and accelerate our ecosystem in Mexico, Costa Rica and Guatemala, we believe there may be attractive opportunities for further growth in Honduras, El Salvador and Nicaragua that could be better captured under a different structure.”
Walmart said all of the operations will continue to operate as usual during the evaluation. The retailer said it will also comply with all its obligations with customers, employees, suppliers and stakeholders. In the memo, company officials made no assurance that the evaluation and move will result in a transaction.
“Walmex will inform its shareholders and the investing public at large as provided under applicable laws and regulations,” the company noted in the release.