Wal-Mart Names New Mexican Chief, Sells Banking Operation

Wal-Mart has named Enrique Ostalé President and CEO of its Walmart de Mexico and Centroamérica, effective Jan. 1, 2015. Ostalé is also chairman of the board of the Mexican retailer’s board of directors.

Ostalé joined Wal-Mart Stores in 2009 as part of Walmart’s acquisition of the Chilean retailer D&S, now Walmart Chile, where he held several positions in merchandising, operations and finance from 1989, and from 1997 to 2000 served as CFO. He served as President and CEO of Walmart Chile from 2006 until March 1, 2013, when he was appointed President and CEO for Latin America.

In addition to leading Walmex, Ostalé will continue to oversee Walmart’s operations in Latin America.

“Mexico and Central America is a priority market for Walmart. Enrique has excellent global experience within the retail industry and will drive growth opportunities throughout the region, both in stores and through our growing e-commerce business,” said David Cheesewright, President and CEO of Walmart International and Walmart de Mexico y Centroamérica board member. “He is a strong leader, and his cross functional experience will ensure that we remain well positioned to serve the 2 billion customers that count on Walmex every year.”

BANK SALE
Wal-Mart de Mexico also disclosed earlier last week that it sold its banking operations, Banco Walmart, for roughly $247 million.

The agreement includes the sale of 100% of Banco Walmart at a price equivalent to 1.7 times shareholders equity.

Mexican billionaire banker and business magnate Carlos Slim’s Grupo Financiero Inbursa is the acquirer and gives Inbursa access to more than 2,100 Wal-Mart stores throughout Mexico.

Banco Walmart is considered one of Mexico’s smaller financial institutions. It had 8.03 billion pesos in assets ($548.58 million US) as of the end of October. Banco Walmart had 5.43 billion pesos ($370.96 million US) in deposits and 1.79 billion pesos ($122.29 million US) in loans on its books in October.

As of December 31, 2013 Grupo Financiero Inbursa owns the sixth largest bank in Mexico in terms of total assets and in terms of loan portfolio, as well as the fourth largest insurance company.