Walmart’s Mexican subsidiary takes steps to reduce its footprint

Walmart Mexico’s operations in Honduras, El Salvador and Nicaragua are being evaluated for potential joint ventures, strategic partnerships or perhaps a sale as the retailer seeks to focus its efforts on operations in Mexico, Costa Rica and Guatemala.

All of Walmart’s Mexican and Central American retail operations fall under Walmex, a subsidiary that publicly trades in Mexico. Walmex has informed its shareholders of its intention to seek opportunities to reduce its commercial exposure in Honduras, El Salvador and Nicaragua.

“All of our operations in Central America are solid businesses with a differentiated customer value proposition, a world-class and well-invested infrastructure, a significant growth track and strong fundamentals,” said Guilherme Loureiro, CEO of Walmart de México y Central America. “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 additional growth in Honduras, El Salvador and Nicaragua which could be better entered in a different structure.”

Walmart said all operations will continue to operate as usual during the assessment. The retailer said it would also meet all of its obligations to customers, employees, suppliers and stakeholders. In the memo, company officials gave no guarantees that the assessment and move will result in a transaction.

“Walmex will notify its shareholders and the general investing public in accordance with applicable laws and regulations,” the company said in the statement.

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